Comptroller of the Currency
Administrator of National Banks
Office of the Comptroller of the Currency
March 1993
Comptroller
Stephen R. Steinbrlnk (Acting)
Policy Group
Chief Counsel .
Senior Deputy Comptroller for Administration .
Senior Deputy Comptroller for Bank Supervision Operations .
Senior Deputy Comptroller for Bank Supervision Policy .
Senior Deputy Comptroller for Corporate Policy and Economic Analysis
Senior Deputy Comptroller for Legislative and Public Affairs .
Senior Advisor to the Comptroller .
. . William Paul Bowden, Jr.
. Judith A. Walter
Clifton A. Poole, Jr. (Acting)
. Susan F. Krause
. . . Frank Maguire (Acting)
. Frank Maguire
. Vacant
Background
The Office of the Comptroller of the Currency (OCC) was
established in 1 863 as a bureau of the Department of the
Treasury. The OCC is headed by the Comptroller who is
appointed by the President, with the advice and consent of
the Senate, for a 5-year term.
The OCC regulates national banks by its power to:
• Examine the banks;
• Approve or deny applications for new charters,
branches, capital or other changes in corporate or
banking structure;
• Take supervisory actions against banks which do
not conform to laws and regulations or which
otherwise engage in unsound banking practices,
including removal of officers, negotiation of agree¬
ments to change existing banking practices, and
issuance of cease and desist orders; and,
• Issue rules and regulations concerning banking
practices and governing bank lending and invest¬
ment practices and corporate structure.
The OCC divides the United States into six geographical
districts, with each headed by a Deputy Comptroller.
The Office is funded through assessments on the assets
of national banks.
The Comptroller
Stephen R. Steinbrink has been Acting Comptroller of the
Currency since March 1, 1992.
By statute, the Comptroller serves a concurrent term as a
Director of the Federal Deposit Insurance Corporation
and the Neighborhood Reinvestment Corporation. The
Comptroller also serves as a member of the Federal
Financial Institutions Examination Council.
Mr. Steinbrink joined the OCC in 1967 in Kansas City,
Missouri, and was commissioned as a National Bank
Examiner in 1 970. In 1 983, he was appointed Director for
Bank Supervision/Regional Banks for the Southwestern
District Office. Prior to his appointment as Acting Comp¬
troller of the Currency, he also served as Deputy Comp¬
troller for Multinational Banking and Senior Deputy
Comptroller for Bank Supervision Operations.
Mr. Steinbrink is a native of Falls City, Nebraska, and is a
1967 graduate of the University of Nebraska.
e Quarterly Journal is the journal of record for the most significant actions and policies of the Office of the Comptroller of
r e Currency It is published four times a year in March, June, September and December The Quarlcrly Journal includes
.rite decisions on banking structure, selected speeches and testimony, material released in the interpre¬
ts' ii l its md other information of interest to the administration of national banks. Suggestions,
' rii may be sent to Patricia Eggleston, Senior Writer/Editor, Communications Division,
IT )?19 Subscriptions are available for $60 a year by writing to Publications
r.hmglon, DC 20219.
Quarterly Journal
Office of the
Comptroller of the Currency
Stephen R. Steinbrink
Acting Comptroller of the Currency
The Administrator of National Banks
Contents
Page
Operations of National Banks . 1
Comptroller’s Report of Operations, 1 992 . 11
Operating Plan for Bank Supervision, 1993 . 39
Community Reinvestment Act . 41
Consumer Complaints . 43
Change in Bank Control Act . 45
Recent Corporate Decisions . 47
Special Supervision and Enforcement Activities . 49
Speeches and Congressional Testimony . 55
Interpretations — October 1 to December 31, 1992 . ’ 65
Mergers — October 1 to December 31, 1992 . ’’’’’’’’ 85
Tables on the Structure of the National Banking System . 99
Statistical Tables on the Financial Performance of National Banks . 133
Index, 1992 . 14g
Operations of National Banks
National banks turned in a record performance in 1 992,
with strong improvement in profits, capital levels, and
credit quality. Preliminary operating results of 3,592
national banks for the fourth quarter of 1992 indicated
that national bank profits in 1 992 hit an all-time high and
were almost twice the amount for 1991. Increased
profits were due largely to improved credit quality that
allowed banks to reduce provisions to loan loss reserves;
continued growth in net interest income; and gains on
the sale of investment securities. National banks used
those higher profits to improve their equity capital
ratios, to 7.23 percent for the system as a whole.
Credit quality at national banks showed clear improve¬
ment, with the percentage of noncurrent ioans declin¬
ing for the sixth straight quarter. As a result, national
banks ended the year with loan loss reserves equal to
82.25 percent of noncurrent loans, up from 67.02 per¬
cent for the previous year.
For the first time, total assets at national banks topped
the $2 trillion mark, largely due to strong asset growth
in the fourth quarter. Although loan volume continued
to decline, there are some signs that this was the result
of banks’ resolving credit quality problems rather than
a decline in lending.
A Record Year for Earnings Fuels Capital
Growth
National banks reported a record $17.29 billion in
profits in 1992, nearly twice the amount reported in
1 991 , and 27 percent higher than the amount reported
in 1988, the previous record year. The return on equity
(ROE) for 1992, 13.07 percent, was up dramatically
from 7.32 percent for 1991 and near the ten year high
of 13.17 percent reported for 1988. The improvement
in aggregate earnings has been widespread. Com¬
pared with the same period a year ago, national banks
in every region of the country and size group reported
higher profits. Moreover, a smaller portion of national
banks are losing money than in recent years. In 1992,
274, or 8 percent, of national banks reported losses,
down from an average of 17 percent over the previous
five years.
Return on equity
Source: call reports
Equity capital to assets
Source: call reports
National banks used the improvement in earnings in
1992 to continue to build capital. They ended the year
with $144.86 billion in equity capital after increases of
$3.93 billion in the fourth quarter and $18.03 billion for
the year. The ratio of equity to assets rose for the fifth
consecutive quarter, to 7.23 percent.
Regulatory capital ratios also continued to improve.
The aggregate leverage ratio for national banks in¬
creased to 6.84 percent at the end of 1992 from 6.08
percent a year ago. The aggregate risk-based capital
ratio increased to 1 1 .57 percent at the end of the year
from 9.98 percent a year ago.
Credit Quality Problems Ebb
There are now strong indications that national banks
are beginning to recover from the credit quality
problems that have plagued them in recent years. The
1
ratio of noncurrent loans to loans for all national banks
fell to 3.36 percent, the sixth consecutive quarter of
decline from the peak of 4.39 percent at the end of the
second quarter of 1991. The noncurrent loan ratio,
however, remains above the rates observed before
1990.
The aggregate improvement in the noncurrent loan rate
is the result of general improvements in all major
categories of bank lending except real estate construc¬
tion lending. For example, 3.33 percent of commercial
and industrial loans were noncurrent at the end of 1 992,
compared with 4.55 percent at the end of 1 991 . Similar¬
ly, the noncurrent rate for commercial real estate loans
has fallen from 6.78 percent at the end of 1991 to 5.64
percent at the end of 1992.
In contrast, the noncurrent rate for real estate construc¬
tion loans rose from 16.57 percent at the end of 1991
to 1 7.98 percent at the end of 1 992. However, construc¬
tion loans made up a smaller portion of the real estate
loan portfolio over that same period, falling from 12.4
percent of real estate loans to 9.5 percent at year-end
1992.
Noncurrent loans to loans
0/
/O
Other real estate owned
$ Billions
Another sign of the improvement in credit quality is the
decline in the volume of repossessed real estate
(OREO) held by national banks. In the fourth quarter
OREO dropped by $1.52 billion to $17.15 billion. The
large fourth quarter drop in OREO offset increases
earlier in the year and resulted in a $519 million
decrease for the year. This is the first time in more than
10 years that the volume of OREO at national banks has
declined from the end of one year to the end of the next
year.
Profitability Benefited from Improved Credit
Quality, Lower Rates
For the year, the improvement in national banks' profits
came, in large part, from reduced aggregate provision¬
ing for loan losses. Banks set aside $15.39 billion
against possible loan losses in 1992, compared with
$21.80 billion in 1991 and an average of $1 9.26 billion
in each of the preceding five years. Even though
provisions were down in 1992, the general improve¬
ment in credit quality has led to an increase in the ratio
of reserves to noncurrent loans from 67.02 percent a
year ago to 82.25 percent at the end of 1992.
Quarterly loan loss provision
$ Billions
Source: quarterly call reports
Quarterly net interest income
$ Billions
1989 1990 1991 1992
Source quarterly call reports
2
Another source of improvement in earnings was con¬
tinued growth in net interest income. In the current low
interest rate environment, the rates national banks pay
on deposits have fallen significantly more than the rates
they receive on loans and other investments. National
banks recorded $20.34 billion in net interest income in
the fourth quarter of 1992, up slightly from the $20.01
billion reported in the third quarter. This was the seventh
consecutive quarterly increase, resulting in an 18 per¬
cent increase in net interest income since the first
quarter of 1991.
National banks also continued to take advantage of the
low interest rate environment to report sizable gains on
the sale of investment securities. Although down by 50
percent from the previous quarter, the $393 million in
securities gains reported in the fourth quarter of 1992
was still larger than the amount reported in all but four
of the previous fifteen quarters. With the gains reported
in the rest of the year the total for 1 992 was $2.23 billion,
just short of the record of $2.34 billion in 1986.
National Banks’ Assets Go Over $2 Trillion
From 1980 to 1989 national bank assets increased by
almost $100 billion a year, ending 1989 at $1.98 trillion.
From 1989 through the third quarter of 1992, asset
growth virtually ceased. But a 1.4 percent increase in
the fourth quarter pushed national bank assets above
$2 trillion for the first time.
Despite the fourth quarter growth in assets, the volume
of loans held by national banks declined for the ninth
straight quarter. However, there are signs that the
decline in the volume of loans may be due to the
continued resolution of credit quality problems. The
decline in lending in the fourth quarter, $3.54 billion, is
the smallest decline in eight quarters. In the fourth
quarter, 1-4 family mortgage lending rose $4.79 billion,
and consumer loan volume rose by $1.45 billion. Al¬
though commercial and industrial loan volume fell by
half a billion, it was the smallest decline since these
kinds of loans began falling in the second quarter of
1 990. The largest quarterly decline in loan volume was
$6.07 billion in real estate construction loans. Banks
have had significant credit quality problems with their
construction loans in recent years, and much of this
decline may result from the resolution of weaknesses in
banks' existing portfolios.
Northeast and West Diverge
The performance of national banks on the east and
west coasts continued to diverge, as banks in the
northeast improved while those in the west deteri¬
orated. In the northeast, the performance of national
banks has improved throughout the year, but still lags
that of other regions of the country. Northeastern na¬
tional banks reported an ROE of 9.79 percent. This was
significantly higher than the ROE of a year ago, which
was 1 .48 percent, but it remains well below the national
average of 13.07 percent. Other measures of perfor¬
mance, including the equity-to-assets ratio, the level of
loan losses, and the percentage of noncurrent loans,
continued to improve.
In the West, overall performance improved, but credit
quality deteriorated, and small banks suffered. The
1 3.77 percent ROE reported by all national banks in the
west in 1992 was above the national average and
significantly higher than the 6.91 percent earned a year
ago. However, the ratio of noncurrent loans to loans was
4. 1 4 percent at the end of the fourth quarter, down from
the third quarter, but significantly higher than the na¬
tional average of 3.36 percent.
The continued weak performance in the West was
concentrated in small banks in California. National
banks in California with less than $10 billion in assets
showed some slight improvement in earnings, losing
$80 million in 1 992 compared with $1 70 million in 1 991 .
But 35 percent of those banks lost money in 1992,
compared to 30 percent in 1991 . Credit quality at those
banks also deteriorated, with the noncurrent loan ratio
increasing to 6.88 percent at the end of the fourth
quarter from 6.07 percent a year ago. Despite those
weaknesses and an overall decline in equity, an even
more significant decline in assets has enabled small
banks in California to increase their ratio of equity
capital to assets to 8.84 percent at the end of 1 992, from
8.40 percent a year ago.
Mark Winer
Banking Research and Statistics
3
Aggregate Performance Data for National Banks
(Data Through Fourth Quarter of Each Year)
1987
1988
1989
1990
1991
1992
Industry Structure
Number of Banks
4,603
4,333
4,165
3,968
3,781
3,592
Number of Banks with Losses
1,018
766
647
615
496
274
Number of Failed/Assisted Banks
72
89
111
96
44
33
Income Statement ($ Billions)
Year-to-date
Net Income .
-0.28
13.61
10.39
7.34
893
17.29
Net Interest Income .
58 95
63.89
66.89
67.29
7056
76.35
Noninterest Income .
25.67
27.65
32.74
34.66
36.23
39.61
Noninterest Expense .
58.48
61.43
66 09
70.16
74.50
77.76
Loan Loss Provision .
24.55
10.93
18.17
20.85
21.80
15.39
Securities Gains, Net .
0.82
0.06
0.46
0.29
1.84
2.23
Extraordinary Income, Net .
0.05
0.44
0.31
0.28
0.72
034
Net Loan Loss .
10.62
12.41
14.96
18.82
20.94
1568
Fourth Quarter
Net Income .
1.11
3.69
0.02
0.05
2.29
4 39
Net Interest Income .
15.76
18.12
17.01
17.70
18.56
20.34
Noninterest Income
7.67
7.38
9.14
948
9.99
10.30
Noninterest Expense .
16.06
16.60
17.67
19.33
20.27
21.01
Loan Loss Provision .
5.55
3.47
7.74
7.43
6.57
3.46
Securities Gains, Net .
002
-0.20
0.15
0.16
0.89
0.39
Extraordinary Income, Net .
-0 03
0.17
0.01
0.18
0.31
0 10
Net Loan Loss .
3.92
3.47
6.18
5.54
5.66
4.17
Performance Ratios (%)
Year-to-date
Return on Equity .
-028
13.17
9 40
6.36
7.32
13.07
Return on Assets .
-0.02
0 76
0 55
038
0.46
0.90
Net Interest Margin .
3.41
3.56
3.52
3.47
363
3.95
Loss Provision to Loans .
228
096
1.49
1.67
1.78
1.32
Net Loan Loss to Loans .
099
1.09
1.22
1.51
1.70
1.34
Noncurrent Loans to Loans .
3.78
3.04
3.22
4 06
4.10
3.36
Loss Reserve to Loans .
2.89
2.52
2.55
2.68
2.75
2.76
Loss Reserve to Noncurrent Loans .
76.58
82.72
78 97
65.90
67.02
82.25
Loans to Assets .
6287
64.17
64.32
64.29
61.97
59.50
Loans to Deposits .
82 51
83.71
84.58
81.99
78.19
7696
Equity Capital to Assets .
564
586
5.75
6.04
640
7.23
Estimated Leverage Ratio .
N/A
N/A
N/A
5.73
6.08
684
Estimated Risk-Based Capital Ratio ....
N/A
N/A
N/A
9.00
9 98
11.57
Note: 1992 data are preliminary. 0.00 indicates an amount of less than $5 million.
Banking Research and Statistics
4
Aggregate Condition Data for National Banks
(Data Through Fourth Quarter of Each Year)
1987
1988
1989
1990
1991
1992
Balance Sheet (S Billions)
Assets .
1,769.92
1,846 17
1,976.07
1.983 90
1.980 67
2,004 56
Loans .
1,112.66
1,184.60
1,271.03
1,27551
1,227.51
1,192 70
Real Estate (RE) .
357.55
407.63
466.22
501.80
502.48
498 09
Commercial & Industrial (C&l) .
367.23
37558
388 27
385 10
347 94
332 54
Consumer (Cnsmr) .
214.76
233 89
252.06
238.89
234 29
226 59
Noncurrent Loans .
42.05
36 05
40.98
51 79
50 34
40 06
Noncurrent RE Loans .
11.22
10.61
15.87
25.27
26.92
23 07
Noncurrent C&l Loans .
17.48
13.32
13.71
17.08
15.82
11.08
Noncurrent Cnsmr Loans .
2.57
2.71
3.05
3 33
3 46
3.15
Other Real Estate Owned
6.19
6.74
9.22
14.45
17.67
17.15
Investment Securities .
272 41
275.14
294 33
312.81
360 02
404.02
Total Liabilities .
1,670.06
1,737.94
1,862.31
1.863 98
1,853.83
1,859 70
Total Deposits .
1,348.48
1.415.09
1,502.75
1,555.60
1,569.91
1,549.83
Domestic Deposits .
1,137.47
1,220.71
1,304.79
1,370.80
1,376.97
1,369 55
Loan Loss Reserve .
32.20
29.82
32.36
34.13
33 73
32 95
Equity Capital .
99.78
108.15
113.68
119.92
126.84
144 86
Total Capital .
N/A
N/A
N/A
149.08
154.81
17320
Balance Sheet Changes ($ Billions)
Year-To-Date Changes
Assets .
29 44
76.26
129.89
7.83
-3.23
2389
Loans .
39.63
71.94
86.43
4.47
-48.00
-34 81
Noncurrent Loans .
11.24
-6.00
4 92
10 81
-1.45
-10.28
Other Real Estate Owned .
1.21
0.55
2.48
5.23
3.22
-0 52
Investment Securities .
19.01
2.73
19.19
18.48
47.21
44 00
Total Liabilities .
31.88
67.88
124.37
1.67
-10.15
587
Deposits .
27 95
66.61
87.67
52.85
14.31
-20.08
Loan Loss Reserve .
14.12
-2 38
2.54
1.77
-0.40
-078
Equity Capital .
-2.45
8.38
5.52
6.24
692
18 03
Total Capital .
N/A
N/A
N/A
N/A
5.73
1839
Fourth Quarter Changes
Assets .
44.37
30.78
56.15
4.69
-11.21
28 64
Loans .
25.05
22.86
2443
-2.19
-7.66
-3.54
Noncurrent Loans .
-0.06
-5.75
-0.02
4.48
-1.98
-4 67
Other Real Estate Owned .
0.19
-1.38
1.23
1.82
0.57
-1.52
Investment Securities .
6.83
1.89
3.07
-2.04
16.01
930
Total Liabilities .
44 82
28.53
56 66
4.62
-12.48
24 72
Deposits .
43.12
40.13
58.89
30.02
11.32
2901
Loan Loss Reserve .
1.69
-2.30
1.69
2.18
0.91
-0 62
Equity Capital .
-0.45
2.25
-0.51
0.14
1.27
393
Total Capital .
N/A
N/A
N/A
4.45
1.88
425
Note: 1992 data are preliminary 0.00 indicates an amount of less than $5 million.
Banking Research and Statistics
5
Aggregate Performance Data for National Banks by Size
(Data Through Fourth Quarter of Each Year)
Under $300M
S300MS1B
S1B-S10B
Over $1 0B
Total
1991
1992
1991
1992
1991
1992
1991
1992
1991
1992
Industry Structure
Number of Banks .
3,261
3,061
317
319
168
175
35
37
3,781
3,592
Number of Banks with Losses .
424
233
34
18
29
19
9
4
496
274
Number of Failed/Assisted Banks .
36
27
3
5
3
1
2
0
44
33
Income Statement ($ Billions)
Year-To-Date
Net Income .
1.97
2.50
1.20
1.67
3.23
6.02
2.53
7.10
8.93
17.29
Net Interest Income .
9 85
10.24
6 47
6 89
23 62
23.51
30.62
35.70
70.56
76.35
Noninterest Income
264
2.77
2.18
2.23
12.76
13.27
18 66
21.34
36.23
39.61
Noninterest Expense .
8 77
8 78
5.71
5.86
24 78
23.96
35.25
39.16
74.50
77.76
Loan Loss Provision .
1.11
0.88
1.38
0.97
7.43
4.66
11.88
8.89
21.80
15.39
Securities Gains, Net .
0.13
021
0.12
0.10
0.67
0.60
0.91
1.32
1.84
2.23
Extraordinary Income, Net .
004
0.03
0.01
0.01
000
0.05
0.68
0.25
0.72
0.34
Net Loan Loss .
0.96
0 76
1.19
0.85
6.47
4.77
12.32
9.30
20.94
15.68
Fourth Quarter
Net Income .
0.50
0.58
0.35
040
0.74
1.49
0.70
1.93
2.29
4 39
Net Interest Income .
257
266
1.71
1.79
6.27
6.05
8.02
9.85
18.56
20.34
Noninterest Income .
0.76
076
0.66
0.57
3.48
3.57
5.09
5.40
9.99
10.30
Noninterest Expense .
2 36
2 38
1.54
1.57
689
653
9 47
10.52
20.27
21.01
Loan Loss Provision .
0.34
0.24
0.41
0.23
200
1.04
3.82
1.95
6.57
346
Secunties Gains, Net .
0.06
003
0.08
0.02
0 32
0.18
0.43
0.17
0.89
0.39
Extraordinary Income, Net .
0.01
001
0.00
0.00
-001
0.00
0.31
0.09
0.31
0.10
Net Loan Loss .
0.33
0.25
0.38
026
1.82
1.27
3.14
2.40
5.66
4.17
Performance Ratios (%)
Year-To-Date
Return on Equity .
9.73
1226
10.55
13.95
8 48
15.35
4.84
11.70
7.32
13.07
Return on Assets .
081
1.04
0.75
1.05
0.54
1.08
0.27
0.73
0.46
0.90
Net Interest Margin .
4.04
4 26
4.05
4.34
3 96
4.22
3.23
3.67
3.63
3.95
Loss Provision to Loans .
0.85
0.70
1.39
1.02
1.97
1.40
1.91
1.45
1.78
1.32
Net Loan Loss to Loans .
0.74
0.61
1.20
0.90
1.72
1.43
1.98
1.51
1.70
1.34
Noncurrent Loans to Loans .
2.09
1.83
2.25
1.82
3.38
2.60
5.27
4 31
4.10
3.36
Loss Reserve to Loans .
1.83
1.87
205
2.06
289
3.04
297
2.91
2.75
2.76
Loss Reserve to Noncurrent Loans .
87.68
102.70
91.04
113.13
85 63
116.93
56.35
67.51
67.02
82.25
Loans to Assets .
52.70
51.98
60 65
59.44
61.92
58 32
64.65
61.98
61 97
59.50
Loans to Deposits .
59.54
58.77
71.59
70.95
79.37
75.74
84.31
84.00
78.19
76.96
Equity Capital to Assets .
8 32
8.68
7.24
7.78
6.60
7.41
5.64
6.68
6.40
7.23
Estimated Leverage Ratio .
828
862
7.03
7.64
6.30
7.10
523
6.16
6.08
6.84
Estimated Risk-Based Capital Ratio ....
15.20
16.13
11.97
13.10
10.04
12.01
8.78
10.45
9.98
11.57
Note 1992 data are preliminary. 0.00 indicates an amount of less than $5 million
Banking Research and Statistics
Aggregate Condition Data for National Banks by Size
(Data Through Fourth Quarter of Each Year)
Under S300M
S300M-S IB
S1B-S10B
Over $1 OB
Total
1991
1992
1991
1992
1991
1992
1991
1992
1991
1992
Balance Sheet ($ Billions)
Assets
250.24
246 04
164.08
163.74
608.93
571.65
957 43
1023 13
1,980 67
2,004 56
Loans
131.89
127.88
99.51
97.34
377.18
333.38
61893
634 10
1,227 51
1,19270
Real Estate (RE)
70.62
72.47
4968
50.21
145.75
132.25
236.43
243.15
502.48
498 09
Commercial & Industrial (C&l)
24.91
22.73
19.87
18.16
93.75
7988
209.41
211.76
347.94
332 54
Consumer (Cnsmr)
2602
23.26
23 55
23 99
100 81
89 86
83.92
89 48
234 29
226.59
Noncurrent Loans
2.75
2.33
2.24
1.77
12.75
8.65
32 60
27 30
50.34
40.06
Noncurrent RE Loans
1.41
1.23
1.27
1.03
6.82
4.87
17.42
15.94
26.92
23.07
Noncurrent C&l Loans
1.10
0.92
0.64
0.50
3.64
2.18
10 44
7.47
15.82
11.08
Noncurrent Cnsmr Loans
023
0.17
0.22
0.18
1.51
1.21
1.49
1.58
3.46
3.15
Other Real Estate Owned
1.54
1.35
1.03
0.85
5.38
3.70
9.71
11.25
17.67
17.15
Investment Securities
7969
81.27
38 44
42.31
123.07
135.28
118.82
145 16
360.02
404 02
Total Liabilities
229.43
224.69
152.21
151.00
568.73
529.27
903.46
954.74
1,853.83
1,859.70
Total Deposits
221.54
217.58
139.01
137.20
475.24
440.17
734.12
754.88
1,569 91
1,549.83
Domestic Deposits
221.38
217.43
138.75
137.06
466.46
432.82
550.38
582.24
1,376.97
1,369.55
Loan Loss Reserve
2.42
2.40
2.03
2.00
10.91
10.12
18.37
18.43
33 73
32.95
Equity Capital
20.81
21.35
11.86
12.74
40.19
42.37
53.96
68.40
126.84
144 86
Total Capital
22.50
22.80
12.99
13.74
45.14
46.68
74 18
89 97
154 81
173.20
Balance Sheet Changes ($ Billions)
Year-To-Date Changes
Assets
-3.83
-4.20
429
-0.34
-0.85
-37.28
-2.83
65.71
-3.23
23.89
Loans
-6.47
-4.01
-0.87
-2.18
-15.35
-43 80
-25.30
15.17
-48 00
-34 81
Noncurrent Loans
-0.10
-0.42
0.09
-046
-1.40
—4. 1 1
-0 03
-5.29
-1.45
-10.28
Other Real Estate Owned
-0.02
-0.20
0.05
-0.17
0.32
-1.68
288
1.53
3.22
-0.52
Investment Securities
7.12
1.58
5.53
3.87
19.47
12.21
15 09
26.33
47.21
44 00
Total Liabilities
-3.87
-4.74
3.66
-1.21
-4.71
-39 46
-5.23
51 28
-10.15
5.87
Deposits
-3.33
-3.95
5.65
-1.81
-3.38
-35.07
15.38
20.77
14.31
-20 08
Loan Loss Reserve
0.01
-0.02
0.16
-0.03
0.35
-0.79
-0 92
0.06
-0.40
-0.78
Equity Capital
0.05
0.54
0.62
0.88
3.86
2.18
2.39
14.43
692
1803
Total Capital
-0.11
0.30
0.74
0.75
2.79
1.54
2.31
15.79
5 73
18.39
Fourth Quarter Changes
Assets
-2.79
-2.34
-4.21
1.77
14.86
-14.57
-19 06
43.78
-11.21
2864
Loans
-3.19
-4.36
-2.85
-0.96
4.90
-1891
-6.52
20.70
-7.66
-3.54
Noncurrent Loans
-0.22
-0.31
-0.21
-0.29
-0.67
-1.78
-0 88
-2.29
-1.98
-467
Other Real Estate Owned
-0.05
-0.10
0.01
-0.07
-0.22
-0.87
0.84
-0.48
0.57
-1.52
Investment Securities
1.31
-1.04
-0.01
0.37
8.00
-3.17
6.70
13.13
16.01
9.30
Total Liabilities
-2.67
-1.72
-3.89
1.81
13.56
-13.19
-19 49
37.82
-12.48
24.72
Deposits
-2.47
-1.00
-3.75
1.72
11.65
-7.77
5.89
36.06
11.32
29 01
Loan Loss Reserve
-0.07
-0.08
-0.03
-0.08
0.27
-0.56
0.74
0.10
0.91
-0.62
Equity Capital
-0.12
-0.62
-0.32
-0.03
1.29
-1.37
0.42
5.96
1.27
393
Total Capital
-0.19
-0.78
-0.39
-0.14
1.52
-2.21
0.94
7.38
1.88
4.25
Note: 1992 data are preliminary. 0.00 indicates an amount of less than $5 million.
Banking Research and Statistics
7
Aggregate Performance Data for National Banks by Region
(Data Through Fourth Quarter of 1992)
Northeastern
Southeastern
Central
Midwestern
Southwestern
Western
Total
Industry Structure
Number of Banks
398
499
744
622
865
464
3,592
Number of Banks with Losses
44
53
29
18
60
70
274
Number of Failed/Assisted Banks
6
2
1
0
20
4
33
Income Statement ($ Billions)
Year-To-Date
Net Income
4 01
3.03
3.17
1.87
2.04
3.17
17.29
Net Interest Income
23 84
12.40
12.90
5.14
6.75
15.31
76.35
Noninterest Income
14.64
5.15
5.11
3.87
3.10
7.73
39.61
Noninterest Expense
27.04
11.92
11.46
5.63
7.02
14.70
77.76
Loan Loss Provision
6 78
1.56
242
0.83
0.46
3.34
15.39
Securities Gains, Net
1.14
029
0.24
0.13
0.20
023
2.23
Extraordinary Income, Net
0.24
001
-0.02
0.07
0.06
-0.03
0.34
Net Loan Loss
7.06
1.61
2.42
0.75
0.60
3.24
15.68
Fourth Quarter
Net Income
0.95
0.66
092
0.47
0.52
0.86
4 39
Net Interest Income
6.36
3.24
3.46
1.29
1.90
4.10
20.34
Noninterest Income
3.72
1.31
1.33
1.00
0.88
2.06
10.30
Noninterest Expense
7.29
3.27
3.03
1.44
2.06
3.92
21.01
Loan Loss Provision
1.65
0.35
046
0.19
0.06
0.75
3.46
Securities Gains, Net
0.27
0.04
0.06
0.02
0.00
0.00
0.39
Extraordinary Income, Net
0.05
0.00
-0.02
0.07
0.03
-0.03
0.10
Net Loan Loss
1.91
0.53
0.42
0.20
0.13
098
4.17
Performance Ratios (%)
Year-to-date
Return on Equity
9 79
13.87
13.33
18.07
16.53
13.77
13.07
Return on Assets
0.61
0.97
0.99
1.40
1.08
1.02
090
Net Interest Margin
3.60
3.95
4.01
3.85
3.58
4 92
3.95
Loss Provision to Loans
1.67
083
1.26
1.09
0.53
1.54
1.32
Net Loan Loss to Loans
1.74
086
1.26
098
0.68
1.49
1.34
Noncurrent Loans to Loans
4.98
1.98
1.89
1.59
1.92
4.14
3.36
Loss Reserve to Loans
3.31
2.09
2.04
2.14
2.41
335
2.76
Loss Resen/e to Noncurrent Loans
66.53
105.58
108.04
134 44
125.80
80 91
82.25
Loans to Assets
59.81
58.35
59.47
57.26
46.61
68.67
59.50
Loans to Deposits
80.27
76.48
77.06
74 19
55.50
85.57
76.96
Equity Capital to Assets
6.60
7.11
7.67
7.89
6.81
8.14
7.23
Estimated Leverage Ratio
6.38
6.89
7.41
7.73
6.76
6.86
6.84
Estimated Risk-Based Capital Ratio
11.19
11.43
11.68
12.97
12.52
11.47
11.57
Note: 1992 data are preliminary. 0.00 indicates an amount of less than $5 million.
Banking Research and Statistics
Aggregate Condition Data for National Banks by Region
(Data Through Fourth Quarter of 1992)
Northeastern
Southeastern
Central
Midwestern
Southwestern
Western
Total
Balance Sheet (S Billions)
Assets
674.02
329.06
335.65
137.27
197.71
330 85
2.004 56
Loans
403. 1 1
192.00
199.63
78.60
92.16
227.20
1,192.70
Real Estate (RE)
152.74
94.60
77.59
31.51
37.37
104 28
498.09
Commercial & Industrial (C&l)
128.46
44.70
58.60
18.15
27 46
55.18
332.54
Consumer (Cnsmr)
69.10
35.34
42.39
17.73
17.66
44 38
226.59
Noncurrent Loans
20.06
3.79
3.77
1.25
1.77
9 42
40 06
Noncurrent RE Loans
11.60
2.49
1.66
0.41
093
5 98
23 07
Noncurrent C&l Loans
5.11
1.00
1.43
0 45
0.66
2 42
11 08
Noncurrent Cnsmr Loans
1.63
0.19
0.35
0.33
0.11
0.54
3 15
Other Real Estate Owned
8.44
1.95
1.56
0.40
111
3.69
17 15
Investment Securities
117.52
76.17
69.83
34.96
61 89
43.65
404 02
Total Liabilities
629.56
305 66
309.89
126.43
184.24
303 93
1,859 70
Total Deposits
502.19
251.03
259 06
105 96
166.07
265 53
1,549 83
Domestic Deposits
365.27
245.16
241.96
105.48
164 63
247 06
1,369.55
Loan Loss Reserve
13.35
4.00
4.08
1.68
2.22
7.62
32.95
Equity Capital
44.46
23.40
25.76
10.84
13.47
26.93
144 86
Total Capital
58.86
26.06
30.39
11.90
14.59
31 40
173.20
Balance Sheet Changes ($ Billions)
Year-To-Date Changes
Assets
8.99
20.38
0.05
9.50
16.87
—3 1.91
23.89
Loans
-16.42
2.55
-2 69
5.56
7 38
-31.19
-34 81
Noncurrent Loans
-5.54
-1.21
-1 13
-0.12
-0.81
-1.48
-10.28
Other Real Estate Owned
0.54
-0.57
-0.15
-0.08
-0.71
0 44
-0 52
Investment Securities
12.92
11.04
5.60
2.59
7.00
4 85
44 00
Total Liabilities
3.08
17.89
-2.32
8.35
15.02
-36.15
5.87
Deposits
-14.81
5.87
-2.07
5.11
9.23
-23 41
-20.08
Loan Loss Reserve
-0 28
-0.07
-0 08
0.20
-0.03
-0.52
-0.78
Equity Capital
5.92
2.49
2.37
1.15
1.85
4.24
18.03
Total Capital
6.89
3.05
289
1.27
1.70
2.60
18.39
Fourth Quarter Changes
Assets
3.03
9.69
656
7.12
1283
-10.60
28 64
Loans
-642
2.59
1.98
2.79
5.65
-10.12
-3 54
Noncurrent Loans
-2.60
-0.47
-0.38
0.04
-0.34
-0.92
- 4.67
Other Real Estate Owned
-0.74
-0.38
-0.23
-0.02
-0.26
0.12
-1.52
Investment Securities
2.25
272
1.00
1.40
1.10
0 84
9.30
Total Liabilities
1.08
9.49
5.94
7.13
12.36
-11.29
24 72
Deposits
1.97
9.60
7.18
5.75
11.59
-7 09
29 01
Loan Loss Resen/e
-0.33
-0.19
0.04
0.10
0.05
-0 30
-0.62
Equity Capital
1.95
0.20
0.62
000
0.47
0.69
3.93
Total Capital
1.39
0.32
0.90
-0.06
0.32
1.37
4.25
Note: 1992 data are preliminary 0.00 indicates an amount of less than $5 million.
Banking Research and Statistics
9
Definitions
Glossary
Commercial Real Estate Loans: Loans secured by nonfarm nonresidential properties.
Construction Loans Loans for construction and land development.
Extraordinary Income: Net income from events and transactions that are "unusual and infrequent."
Failed/Assisted Banks: National banks that have been closed by, or have received financial assistance from, the
Federal Deposit Insurance Corporation (FDIC).
Investment Securities: Total securities excluding those held in trading accounts.
Leverage Ratio: Ratio of estimated Tier 1 capital to estimated tangible total assets.
Loans: Total loans and leases less unearned income.
Net Loan Losses: Total loans and leases charged off (removed from balance sheet because of uncollectibility)
during the period, less amounts recovered on loans and leases previously charged off.
Loan Loss Reserve: The allowance for loan and lease losses.
National Banks: Nationally chartered commercial banks in the U.S. and its territories that are insured by either the
Bank Insurance Fund or the Savings Association Insurance Fund of the FDIC and filed a call report.
Noncurrent Loans: The sum of loans and leases 90 days or more past due plus nonaccrual loans.
Net Interest Margin: Net interest income as a percent of average assets.
Regions: Northeastern (NE) — Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New
Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, Virgin Islands; Southeastern
(SE) — Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia;
Central (CE) — Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin; Midwestern (MW) — Iowa, Kansas,
Minnesota, Missouri, Nebraska, North Dakota, South Dakota; Southwestern (SW) — Arkansas, Louisiana, New
Mexico, Oklahoma, Texas; Western (WE) — Alaska, Arizona, California, Colorado, Guam, Hawaii, Idaho, Montana,
Nevada, Oregon, Utah, Washington, Wyoming. Each bank in a multinational bank holding company is included in
the region in which the bank is located.
Other Real Estate Owned (OREO): Real estate acquired by a bank for debts previously contracted (i.e., foreclosed
real estate). Also includes property formerly used or intended for use for banking purposes.
Residential Real Estate: Loans secured by one- to four-family residential properties plus loans secured by
multifamily (five or more) residential properties.
Risk-based Capital Ratio: Ratio of estimated total capital to estimated risk-weighted assets.
Securities Gains: Net realized gains (losses) on securities not held in trading accounts.
Total Capital: The sum of Tier 1 and Tier 2 capital reported on call report schedule RC-R.
Computation Methodology
Current quarter income statement items were calculated by summing the difference between the year-to-date and
previous quarter numbers of each item for all banks that filed a current quarter call report. For performance ratios
constructed by dividing an income statement (flow) item by a balance sheet (stock) item, the income statement item
for the period //as annualized (multiplied by the number of periods in a year) and the average of the balance sheet
‘err for the period (beginning-of-period amount plus end-of-period amount divided by two) was used.
Comptroller’s Report of Operations — 1992
Comptroller
The Comptroller examines and supervises approxi¬
mately 3,650 federally chartered national banks
through a nationwide staff of bank examiners and other
professional and support personnel. National banks
represent about 30 percent of all commercial banks
and approximately 60 percent of the banking system’s
assets. The Comptroller also supervises the federally
licensed branches and agencies of foreign banks.
The Comptroller serves as a member of the board of
the Federal Deposit Insurance Corporation (FDIC), a
member of the Federal Financial Institutions Examina¬
tion Council (FFIEC), and a member of the board of the
Neighborhood Reinvestment Corporation (NRC).
The Comptroller is advised by a policy group consisting
of the Senior Deputy Comptroller for Bank Supervision
Operations, the Senior Deputy Comptroller for Bank
Supervision Policy, the Senior Deputy Comptroller for
Legislative and Public Affairs, the Senior Deputy Comp¬
troller for Corporate Policy and Economic Analysis, the
Senior Deputy Comptroller for Administration, and the
Chief Counsel.
The Comptroller's personal staff directs, coordinates,
and manages the day-to-day operations of the Comp¬
troller's office and provides advice on policy formulation
and management decisions. The staff also oversees
projects of special interest to the Comptroller. The ex¬
ecutive assistant acts on the Comptroller's behalf to
carry out policies and directions and serves as liaison
with staff of the Office of the Comptroller of the Currency
(OCC) and other agencies.
Senior Deputy Comptroller for Bank
Supervision Policy
The Senior Deputy Comptroller for Bank Supervision
Policy formulates, implements, and monitors examina¬
tion and compliance policies and procedures, over¬
sees OCC supervision and regulation of federal
branches and agencies, and conducts analyses of
international banking issues. These responsibilities are
conducted in the offices of the Chief National Bank
Examiner, the Deputy Comptroller for Compliance
Management, and the Deputy Comptroller for Interna¬
tional Banking and Finance. The Senior Deputy Comp¬
troller for Bank Supervision Policy also coordinates
OCC participation in FFIEC activities and its task
forces, coordinates accounting and reporting issues,
represents the OCC in its relationships with the interna¬
tional financial community, and assures that com¬
pliance supervision is an integral part of OCC's
examination of national banks.
Senior Deputy Comptroller for Bank
Supervision Operations
The Senior Deputy Comptroller for Bank Supervision
Operations oversees the six district offices, the Multi¬
national Banking Department, and the Special Super¬
vision Division. The senior deputy formulates and
implements a broad range of policies relating to OCC’s
district offices and the multinational banking program.
Specific responsibilities include directing programs for
the examination and regulation of national banks to
promote the continuing existence of a solvent and
competitive national banking system. The Senior
Deputy Comptroller for Bank Supervision Operations is
also responsible for directing the examination, super¬
vision, and analysis of multinational and regional banks
including their international banking activities.
Senior Deputy Comptroller for
Legislative and Public Affairs
The Senior Deputy Comptroller for Legislative and
Public Affairs advises the Comptroller and other policy
group members on all policy matters that relate to four
functional areas under the senior deputy’s direct super¬
vision: the Communications Department, the Banking
Relations Division, the Community Development
Division, and the Congressional Liaison Division. The
Senior Deputy Comptroller for Legislative and Public
Affairs also provides information to external groups and
individuals to further the OCC’s goals. The senior
deputy is responsible for external relations with Con¬
gress, the news media, banks and banking organiza¬
tions, bank customers, and nonbank financial industry
and consumer groups.
11
Senior Deputy Comptroller for
Corporate Policy and Economic
Analysis
The Senior Deputy Comptroller for Corporate Policy
and Economic Analysis advises the Comptroller on
policy matters, oversees the OCC's economic research
and analysis of banking and financial regulatory issues,
and is responsible for the OCC’s strategic planning.
The Senior Deputy Comptroller for Corporate Policy
and Economic Analysis is also the primary decision¬
maker responsible for national bank corporate applica¬
tions, including charters, mergers and acquisitions,
conversions, and operating subsidiaries. These
responsibilities are carried out in the offices of
Economic and Policy Analysis and Bank Organization
and Structure.
Chief Counsel
The Chief Counsel advises the Comptroller on legal
matters arising from the administration of laws, rulings,
and regulations governing national banks. The Chief
Counsel directs the legal functions in and for the OCC.
These duties involve writing and interpreting legislation;
responding to requests for interpretations of statutes,
regulations, and rulings; defending the Comptroller's
actions challenged in administrative and judicial
proceedings; supporting the bank supervisory efforts
of the office; and representing the OCC in all legal
matters. Those responsibilities are carried out through
the Litigation Division, the Enforcement and Com¬
pliance Division, the Legislative, Regulatory, and Inter¬
national Activities Division, the Securities, Investments,
and Fiduciary Practices Division, the Bank Operations
and Assets Division, the Corporate Organization and
Resolutions Division, and an organization of counsels
in OCC's six districts.
Senior Deputy Comptroller for
Administration
The Senior Deputy Comptroller for Administration is
responsible for the efficient and effective administrative
functioning of the OCC. Through the Deputy Comp¬
troller for Resource Management, the senior deputy
supervises the Human Resources, Training and Perfor¬
mance Development, Administrative Services, and
Equal Employment Programs divisions. Through the
Deputy Comptroller for Information Resources Manage¬
ment, the senior deputy supervises the Applications
Development, Systems Support, Supervisory Research,
and Information Systems Coordination divisions.
Through the Chief Financial Officer, the senior deputy
supervises Financial Services. The Management Im¬
provement and Quality Improvement divisions are su¬
pervised directly by the senior deputy. District
administrative functions are provided with staff assis¬
tance and guidance from Washington office units.
Bank Supervision Policy
Chief National Bank Examiner
The Chief National Bank Examiner’s office (CNBE) is the
focal point for OCC policy governing the safety and
soundness of the national banking system. It initiates
policy changes related to emerging issues affecting
bank examinations and chairs the Supervision Policy
Committee, a forum through which these policies are
developed.
The office is organized into four groups: traditional
activities, capital markets, supervisory information, and
the chief accountant’s office:
• The traditional activities group provides field
examiner support and policy direction on a
//ide range of banking activities such as lend¬
ing, the allowance for loan and lease losses,
real estate appraisals, bank-owned insurance,
and management processes.
• The capital markets group provides policy
direction on issues such as asset securitiza¬
tion, mortgage-backed securities, mortgage
banking, intangible assets, interest rate risk,
and risk-based capital.
• The supervisory information group develops
and administers OCC’s mainframe computer
supervisory information systems. It also coor¬
dinates interagency activities involving the
processing of quarterly bank and bank holding
company financial data, and provides analyti¬
cal advice about interpreting bank supervision
data.
12
• The chief accountant's office coordinates ac¬
counting and reporting issues; interprets regu¬
latory accounting and generally accepted
accounting principles related to bank examina¬
tion; identifies emerging accounting issues;
and develops new accounting principles. The
group also administers the financial informa¬
tion requirements of the Securities Exchange
Act of 1 934 applicable to national banks under
12 CFR 1 1 and 16 including registration state¬
ments, offering circulars, and merger proxy
statements.
In 1992, The CNBE oversaw OCC implementation of
regulations mandated by the Federal Deposit In¬
surance Corporation Improvement Act of 1991
(FDICIA). This work included developing regulations on
the following issues:
• real estate lending standards (section 304);
• improved examinations (section 111);
• interest rate risk (section 305);
• independent and annual audits (section 112);
• accounting standards (section 121);
• credit to small businesses (section 122); and,
• safety and soundness standards (section 1 32).
The CNBE also issued guidance to national banks on
procedures for appealing the results of an OCC ex¬
amination, real estate appraisal guidelines, and issues
described in the Comptroller’s Handbook for National
Bank Examiners such as the allowance for loan and
lease losses and guidance on merchant processing.
The CNBE administers the Uniform Commission Exami¬
nation (UCE) to certify OCC examiners as National Bank
Examiners. The UCE assesses the candidate's knowl¬
edge of banking laws, regulations, bank operations, asset
evaluation, and financial analysis, as well as the em¬
ployee’s management and communication skills.
The CNBE also provides training support by, for ex¬
ample, developing advanced courses for identified
OCC experts in fields such as capital markets and bank
information. CNBE staff also serve as instructors for
these and other training seminars, host an annual ac¬
counting workshop, and develop the technical content
of selected courses.
The CNBE coordinates OCC participation in the FFIEC,
including support of the Comptroller as a member of
the FFIEC, and the Senior Deputy Comptroller for Bank
Supervision Policy as a member of the FFIEC Task
Force on Supervision. The CNBE also participates in
other FFIEC task forces and provides instructors for
FFIEC courses.
The CNBE updates the Comptroller’s Handbook for
National Bank Examiners, OCC’s supervision policy
issuances, and the Bank Accounting Advisory Series,
which presents staff views on accounting topics such
as the allowance for loan and lease losses and col¬
lateralized mortgage obligations.
In cooperation with OCC data users, the CNBE seeks
to assure that the call report collects the information
needed to supervise national banks. The office also
represents the OCC on the FFIEC EDP Examination
Subcommittee. It maintains the FFIEC EDP Handbook,
coordinates policy development, and assures informa¬
tion systems training for examiners. Finally, the CNBE
represents the OCC in the Multi-District Data Process¬
ing Servicers (MDPS) project.
The CNBE assists other financial entities such as the
American Bankers Association and the American In¬
stitute of Certified Public Accountants. It provides
speakers and participants on panels at banking and
accounting conferences. The chief accountant's staff
also participates in certain Financial Accounting Stand¬
ards Board task forces such as the task force on
financial instruments.
Compliance Management
The Compliance Management Department is respon¬
sible for the OCC’s compliance supervision and ex¬
amination policies. Compliance is an integral part of the
OCC's supervision of national banks. Compliance
Management oversees the following areas of bank
operations: fiduciary activities; the Community Rein¬
vestment Act (CRA); consumer protection laws and
regulations (including the recently enacted Truth in
Savings Act); fair lending laws, principally the Equal
Credit Opportunity Act and the Fair Housing Act; and
the Bank Secrecy Act (BSA). The Compliance Manage¬
ment Department also employs two fair lending
specialists.
Compliance Management participates in the FFIEC's
trust supervision/capital committee and the FFIEC’s
consumer compliance task force and its subcommit¬
tees responsible for the CRA, the Home Mortgage
Disclosure Act (HMDA), and enforcement issues.
These interagency task forces are designed to assure
the financial institution regulatory agencies uniformly
implement compliance with consumer and fiduciary
laws.
13
In 1992, Compliance Management participated in an
interagency revision of questions and answers to the
CRA. Prepared in the FFIEC's CRA subcommittee of the
consumer compliance task force, the revisions
stressed the importance of lending activities as a CRA
assessment factor rather than the amount of documen¬
tation maintained by the institution. The CRA subcom¬
mittee also considered issues related to state-
chartered institutions; the criteria used to determine
how a director, officer, or employee’s outside activities
contribute to an institutions's CRA performance; and
amendments to the CRA required by FDICIA.
In 1 992, the OCC conducted CRA performance evalua¬
tions of 759 national banks. The Compliance Manage¬
ment Department maintains a public file of the CRA
performance evaluations of these national banks as
well as other national banks examined previously. In
1992, 84 national banks received an "outstanding”
evaluation, 572 a "satisfactory" rating, 97 were rated as
"needs to improve," and 6 national banks were in
"substantial noncompliance” with the CRA.
In response to lending disparities revealed in 1990 and
1991 HMDA data and other indications of lending dis¬
crimination, the department prepared a banking cir¬
cular recommending that banks analyze any disparities
in their HMDA data and consider other affirmative steps
to ensure equal treatment of all applicants. The depart¬
ment also distributed a FFIEC publication, Home
Mortgage Lending and Equal Treatment , to all national
banks. The publication highlights certain lending
standards and practices related to race, gender, or
other factors that may adversely affect the ability of
credit applicants to obtain home mortgages. Other fair
lending activities included the referral of over 40 fair
lending complaints filed against national banks to the
Department of Housing and Urban Development
(HUD) pursuant to a memorandum of understanding
between HUD and the OCC.
Compliance Management also issued over 30 bul¬
letins, circulars, and advisories to national banks and
examiners dealing with topics such as the Real Estate
Settlement Procedures Act (RESPA); the Truth in
Savings Act (Regulation DD); the Expedited Funds
Availability Act (Regulation CC); Revised Uniform Inter¬
agency CRA Examination Procedures; and an inter¬
agency press release on the Federal Reserve Bank of
Boston's HMDA study.
In 1992, Compliance Management Department's fidu¬
ciary activities included completing three regulatory
proposals relating to collective investment funds, unin-
/ested cash, and distributions in kind The department
also issued guidance on other trust issues through
rulings on
• purchases of securities from related brokerage
companies;
• purchases by common trust funds of collateral¬
ized mortgage obligations;
• valuation of guaranteed investment contracts
held in collective investment funds;
• the administration of bond trusteeships;
• the assumption by trust departments of semi¬
nar expenses; and,
• investments in mortgage obligations collateral¬
ized by government agencies.
The department also supplied instructors to OCC courses
on proposed revisions to fair lending examination pro¬
cedures, helped update a consumer compliance tech¬
niques school, and facilitated attendance by OCC staff
to FFIEC-sponsored training on the new Truth in
Savings Act regulation (Regulation DD). The depart¬
ment also hosted a seminar for CRA/Retail experts and
an advanced consumer compliance school.
International Banking and Finance
The International Banking and Finance Department
(IB&F) oversees OCC supervision of the federal
branches and agencies of foreign banks operating in
the United States and provides policy advice on inter¬
national banking issues.
IB&F represents the OCC on interagency projects af¬
fecting international banking supervisory policy and
regulation. In 1992, IB&F participated in activities to:
• implement the international banking sections
of FDICIA, including its examination, licensing,
enforcement, compliance, retail deposit¬
taking, and financial reporting by federal
branches and agencies provisions;
• complete reports to Congress on foreign bank
capital equivalency requirements and whether
foreign banks should be required to operate in
the U.S. solely through subsidiaries;
• complete negotiations on the financial services
provisions of the North American Free Trade
Agreement (NAFTA);
• develop initiatives relating to the economic in¬
tegration of Europe in 1992, offshore money
laundering, and trade finance policies;
14
• provide technical assistance to the General
Agreement on Tariff and Trade (GATT) Uruguay
Round financial services negotiations; and,
• cooperate with federal and state bank super¬
visors on the supervision, licensing, and regu¬
lation of foreign banks operating in the United
States.
IB&F also conducts research on international banking
supervision and supports OCC examiners and other
staff engaged in international bank examinations.
Working with other OCC units, IB&F also supports OCC
participation in U.S. efforts to achieve international
bank regulatory harmonization, communication, and
cooperation. IB&F also supports the OCC’s participa¬
tion in the Basle Committee on Banking Supervision.
IB&F collects and analyzes information on the global
banking and financial environment in which U.S. banks
operate. It conducts research on banking, financial,
and supervisory systems in the major countries of the
world. It also maintains and analyzes information on the
foreign banks that operate federal branches and agen¬
cies in the United States.
IB&F oversees the OCC’s Federal Branch Program
which supervises, licenses, and regulates the federal
branches and agencies of foreign banks in the United
States. During 1992, IB&F helped implement new
FDICIA requirements applicable to federal branches
and agencies; initiated a project to enhance the OCC's
supervision and licensing of federal branches and
agencies; and provided technical information to OCC
managers and national bank examiners directly
responsible for federal branch and agency supervision.
Through its representation on the Interagency Country
Exposure Review Committee (ICERC), IB&F assesses
risk in international lending, including the evaluation of
transfer risk associated with exposures to countries
experiencing difficulty servicing their external debt.
Through IB&F, the OCC serves on the permanent
ICERC secretariat and rotates as Chair of ICERC every
third year.
IB&F personnel meet with foreign supervisory author¬
ities and coordinate their requests for information or
technical assistance. IB&F also helps prepare congres¬
sional testimony, furnishes staff for seminars relating to
international banking issues, participates in overseas
missions, and assists in OCC examinations of the over¬
seas operations of national banks.
Bank Supervision Operations
Multinational Banking
The Multinational Banking Department supervises all
national banks owned by the following companies:
BankAmerica Corporation, Bank of Boston Corpora¬
tion, BancOne Corporation, Chase Manhattan Cor¬
poration, Citicorp, First Chicago Corporation,
NationsBank Corporation, and Wells Fargo Corpora¬
tion. As of December 31, 1992, these multinational
banks held total assets of approximately $608 billion,
representing 30 percent of the assets of the entire
national banking system. The department also super¬
vises severely troubled regional bank companies with
national bank subsidiaries, oversees OCC’s interna¬
tional examining activities, and administers the Shared
National Credit and Large Bank programs.
The department’s supervisory philosophy is to assess
each bank’s risk profile and ensure that the level of risk
undertaken by that bank is appropriate and managed
effectively. Examinations are conducted of the banks’
global operations, asset quality, capital adequacy,
management, earnings, liquidity, and compliance with
laws and regulations. The department works closely
with the FDIC, the Federal Reserve Board, and the
Office of Thrift Supervision (OTS) to coordinate major
interagency examination efforts.
The Multinational Banking Department's examination
and supervision efforts are ongoing and, as prac¬
ticable, anticipatory. Field examiners are permanently
stationed in each multinational lead bank to promote
communication exchange, thereby enhancing the
OCC’s ability to promptly identify and address emerg¬
ing issues and risks. Washington-based employees
maintain continuous dialogue with these field ex¬
aminers to ensure that examinations identify risks and
are proceeding as planned. This ongoing communica¬
tion also allows the department to keep OCC manage¬
ment informed of significant events affecting the
assigned institutions.
Examination strategies are developed annually for
each of the multinational companies and revised or
updated as necessary. These strategies are ongoing
and relate closely to economic factors and financial
marketplace developments. A critical element of the
department’s examination strategy is to maintain
15
strong, consistent, and frequent communication with
bank managements, market participants, and industry
analysts.
The department’s Large Bank Program sponsors, or¬
ganizes, and coordinates an annual conference for
examiners-in-charge (EICs) of national banks with over
$5 billion in assets. The conference provides a forum in
which the OCC's senior management and these EICs
can exchange information and ideas on supervision.
The conference also provides an opportunity for in¬
dividual bank managers and financial services industry
experts to provide information on topical or emerging
issues.
Special Supervision
The Special Supervision Division (SPSU) supervises
the national banks in the most critical condition,
monitors failing banks, coordinates bank closings, and
helps determine OCC policy for the examination and
enforcement of problem banks. In 1992, SPSU repre¬
sented the OCC on interagency working groups formed
to implement provisions of FDICIA relating to problem
institutions. SPSU staff participated in working groups
responsible for drafting the prompt corrective action,
failing bank resolutions, discount window advances,
brokered deposits, FDIC backup enforcement authority,
capital standards, and payment system risks regulations.
In 1992, SPSU assumed direct supervisory respon¬
sibility for certain banks; it is now the primary contact
for field examiners assigned to problem national banks.
It approves the scope of examination activities, holds
meetings with management and boards of directors,
reviews corporate applications, and processes reports
of examination and correspondence.
SPSU is the focal point for managing most critical bank
situations in which potential for failure is high. An an¬
ticipatory approach is used to resolve these exigen¬
cies. SPSU deals with each bank individually,
employing enforcement and administrative tools best
suited to that bank's problems. SPSU also helps prob¬
lem banks to identify all possible sources of outside
capital. In 1992, these recapitalization efforts helped
several national banks avoid failure,
SPSU also provides general advice and guidance on
problem bank issues to district offices and other OCC
units. It also develops examination strategies to en¬
hance the OCC’s relationship with problem banks.
Legislative and Public Affairs
Banking Relations
The Banking Relations Division acts as liaison with
bankers, state bankers associations, banking trade
groups, and state bank supervisors.
The division provides advice to the Comptroller and
senior policymakers and is responsible for identifying
proposed regulatory and industry actions that relate to
OCC activities. It formulates specific approaches for
ensuring that OCC's position is presented and that
information is disseminated.
The division recommends new policies, concepts, and
procedures to guide the OCC in its relationship with the
banking industry. It prepares and directs the prepara¬
tion of briefing materials for use in meetings with OCC
officials and banking industry groups. It also assists
with preparation of testimony or presentations for the
Comptroller and senior officials.
The division maintains state-by-state, in-depth anal¬
yses of banking legislation and major issues including
existing, proposed, and potential legislation
Communications
The Communications Department provides information
and publications services. Public information services
include issuing press releases, responding to press
inquiries, answering general inquiries about the
agency’s mission, and handling requests filed under
the Freedom of Information and Privacy acts. Its publi¬
cation services include editing and producing ongoing
OCC publications such as the Quarterly Journal, the
Comptroller’s Manual for National Banks, the Comp¬
troller's Manual for Corporate Activities, and the Comp¬
troller's Handbook for Compliance and editing and
disseminating OCC policy issuances such as advisory
letters and banking bulletins.
The Deputy Comptroller of Communications, as liaison
between the Comptroller and the press, organizes
press briefings, responds to requests from the press for
interviews with the Comptroller and senior manage¬
ment, and provides explanations of OCC initiatives and
proposals. The department serves as the main point of
contact for outsiders, other than banks, and projects
the OCC’s mission and activities to the public, par-
ticularly the news media. The department takes calls
from the news media throughout the day and usually
provides a response the same day to meet daily press
deadlines.
The department also prepares speeches given by the
Comptroller before various public forums and dissemi¬
nates testimony presented before Congress by the
Comptroller and OCC staff. It prepares news releases
on significant OCC actions including submissions to
the Federal Register and bank failures. The department
also tracks securities filings of publicly held national
banks and maintains a central file of OCC enforcement
actions.
The department’s publications personnel provide
editorial and writing assistance to other OCC units and
work with external printers to publish official OCC publi¬
cations. New publications for 1992 included a Special
Anniversary Issue, 1981-1991 of the Quarterly Journal,
The Comptroller and the Transformation of American
Banking, 1960-1990, by Eugene N. White, and An
Examiner’s Guide to Investment Products and Practices.
The department also produces internal publications such
as Supervisions, a monthly employee newsletter, and
distributes OCC issuances and other policy papers to
national bank examiners and national banks.
Under the authority delegated by the Comptroller, the
department is responsible for making initial determina¬
tions on requests for records of the OCC under the
Freedom of Information Act and the Privacy Act of 1 974.
In 1992, the division processed 3,142 requests. These
requests are made for any and all documents in the
OCC's files; response is required within 10 business
days.
Community Development
In 1992, the Customer and Industry Affairs Division
became the Community Development Division (CDD).
The name change reflects the division's increased
commitment to providing policy guidance on com¬
munity development issues affecting national banks
and their customers. The division develops OCC initia¬
tives relating to affordable housing for low- and
moderate-income individuals, small and minority busi¬
ness development, and the redevelopment of low- and
moderate-income areas.
The CDD completed a survey of national bank com¬
munity development activities in 1992. Fifty-four per¬
cent of all national banks responded to the survey,
which researched the types of community development
activities in which national banks participate. The OCC
published preliminary findings of the survey in Decem¬
ber 1992; a full report will be published in early 1993.
The division also initiated a newsletter entitled Com¬
munity Developments in 1992. Designed primarily for
national banks, the newsletter highlights innovative
bank community development programs, provides
regulatory updates relevant to community issues, and
offers news of federal and state programs that may be
useful to banks.
In September, the CDD sponsored a conference on
Building Healthy Communities through Bank Small
Business Financing for more than 500 bankers, trade
association representatives, and bank examiners. The
conference dealt with current issues in small business
finance, presenting the customer, banker, and regulator
perspective on ways to enhance such financing. It also
provided bankers a forum in which to share examples
of effective small and minority business lending
programs. An OCC publication summarizing the con¬
ference will be published in 1993.
The CDD also developed a videotape entitled National
Bank Partnerships for Community Development. It ex¬
amines four community development partnership
programs to help meet low- and moderate-income
housing and small and minority business financing
needs. The video describes how certain banks have
improved their community development efforts through
partnerships with state and local governments, local
community development organizations, local affiliates
of organizations such as the Neighborhood Reinvest¬
ment Corporation, and other banks. The video is a com¬
panion to a 1991 tape entitled Community Develop¬
ment Corporation and Investment Program: National
Banks Investing in the Future. The 1991 video ex¬
amined how national banks can complement traditional
lending activities by investing in community develop¬
ment corporations (CDCs) and community develop¬
ment projects (CD projects) that provide equity
financing and other financing to low- and moderate-in¬
come housing, other real estate projects in distressed
urban and rural areas, and small and minority busi¬
nesses.
In 1 992, the CDD continued to be the OCC unit respon¬
sible for sharing information and ideas with consumer,
community, small business, and housing groups.
Through small meetings, informal contacts, and speak¬
ing engagements, the CDD obtains the views of these
groups and advises OCC policymakers on matters
affecting communities and consumers. The CDD also
routinely provides OCC materials of interest to these
groups.
In 1992, CDD staff also participated in working groups
responsible for implementing the branch closing re¬
quirements, small business disclosure, and bank
enterprise provisions of FDICIA. Staff also represented
17
the OCC on an interagency working group responsible
for implementing incentive programs for community
development and basic banking. The CDD also helped
clarify national bank authority to make community
development investments to promote the public wel¬
fare, as authorized by the Depository Institutions Dis¬
aster Relief Act of 1992. In other interagency activities,
the CDD continued to participate in the Securities and
Exchange Commission's Government-Business Forum
on Small Business Capital Formation, with the CDD's
director serving on the executive committee.
In 1 992, the CDD approved 92 national bank proposals
to make community development investments in 18
new multibank or subsidiary CDCs and 35 CD projects.
CDC and CD projects approved during the year repre¬
sented an initial national bank investment of ap¬
proximately $70.6 million, compared with $57 million for
1991. The division also responded to approximately
300 inquiries from national banks and local community
development leaders on the opportunities available
under the OCC's Community Development Corporation
and Investment Program. The CDD also continued to
publish an annual directory of all CDCs and CD
projects approved by the OCC.
In 1992, the division supported the Acting Comptroller
in his capacity as a statutory member of the board of
directors of the Neighborhood Reinvestment Corpora¬
tion and participant of the Interagency Affordable
Housing Task Force. Finally, the division served as the
OCC liaison for the Department of Treasury Consumer
Affairs Council.
Congressional Liaison
The Congressional Liaison Division is responsible for
the OCC’s relations with members of Congress, con¬
gressional committees, subcommittees, and staff.
The division provides analysis and advice to the Comp¬
troller and senior OCC policymakers on congressional
activities which affect or could affect the OCC, the
national banking system, or the financial services
marketplace. It also offers guidance on potential con¬
gressional reaction to OCC actions.
As part of its responsibilities, the division maintains
regular contact with congressional members, commit¬
tees, subcommittees, and staff to further communica¬
tion and to ensure OCC's interests are represented.
The division is the focal point of congressional inquiries,
including requests for testimony, staff studies, or other
support. It assists in the preparation of testimony, com¬
ments, briefings, and staff studies relating to congres¬
sional actions, as well as responses to constituent
inquiries. Finally, the division provides other necessary
liaison and information services relating to congres¬
sional and legislative matters.
Corporate Policy and Economic Analysis
Bank Organization and Structure
Bank Organization and Structure establishes policies
affecting the corporate activities of national banks. It
reviews individual and national bank applications to
engage in banking activities requiring OCC head¬
quarters approval, monitors and provides advice about
the most significant applications, and strives to main¬
tain effective quality control and information systems
that support decentralized licensing operations.
In 1 992, the total number of corporate applications filed
nearly equaled total receipts in 1991. Of the 20 new
bank charter applications the OCC received, ten were
for full service national banks. Six of these applications
//ere from independent groups while four were spon¬
sored by bank holding companies. The remaining ap¬
plications involved requests to establish trust
companies, credit card banks, or other limited purpose
charters. Of the 25 charters acted on in 1992, the OCC
approved 24 and denied one. During 1992, the OCC
also approved 12 national bridge bank charters at the
request of the FDIC.
The pace of merger and corporate reorganization filings
slowed from 1991 . Applications acted on by the OCC for
mergers with and acquisitions of unaffiliated banks and
thrifts (83 open and 97 closed bank and thrift acquisitions)
declined 22 percent from 1991. During 1992, the OCC
also approved 21 acquisitions of failing banks by bridge
banks approved for the FDIC in 1991 and 1992.
In 1991, OCC district offices, under delegated author¬
ity, decided approximately 96 percent of all applica¬
tions. Consistent with previous years, the districts
approved most of these applications (99 percent).
The following table summarizes the types of corporate
applications filed with the OCC and their disposition
18
1992 Corporate Applications
Application Type
Received
1991 1992
Districts
Approved Denied
Washington
Approved Denied
Total
Decisions
Branches
531
584
612
3
5
1
621
Change in Control
20
34
14
0
7
4
25
CBCTs
1,385
1,317
1,398
1
4
0
1,403
Capital
333
381
326
2
9
4
341
Charters
28
20
14
0
10
1
25
Conversions
17
19
16
0
7
1
24
Corporate Reorgs
195
197
151
0
28
1
180
Federal Branches
1
2
0
0
0
0
0
Fiduciary Powers
20
26
19
0
2
0
21
Mergers
234
184
145
1
34
0
180
Operating
Subs./BSC
184
139
110
0
21
1
132
Relocations
240
289
274
0
6
0
280
Stock Appraisals
4
_ 3
0
0
0
0
0
Totai
3,192
3,195
3,079
7
133
13
3,232
Licensing Policy and Systems
The Licensing Policy and Systems Division develops
and implements general policies and procedures for
the corporate activities operations of the OCC. The
division also coordinates the OCC’s licensing quality
control program and oversees the Licensing Informa¬
tion System, a computerized system for monitoring
corporate operations.
The division strives to reduce paperwork and regulatory
burdens on applicants, and to improve the efficiency
and effectiveness of the OCC’s operations. Significant
projects in 1991 included:
• Participating in 17 working groups formed to
implement various requirements of FDICIA.
Working with other agencies, division staff im¬
plemented procedures to coordinate the
processing of new charter and deposit in¬
surance applications to reduce the burden on
applicants; drafted an interagency statement
on branch closing notice requirements; drafted
guidelines for processing applications involv¬
ing mergers of federal savings and loans and
national banks; and worked with the Federal
Reserve Board to implement interim proce¬
dures for coordinating the processing of
federal branch and agency applications.
Note: The table does not include over 1,000 applications that were
filed with other agencies, but reviewed and commented on by the
OCC, as required by the Bank Merger and Bank Holding Company
acts and in accordance with interagency procedures for administer¬
ing the Change in Bank Control Act. It also does not include 12
national bridge bank charters received and approved at the request
of the FDIC in 1992, and 21 mergers of failed banks with and into
national bridge banks.
• Participating in the Regulatory Uniformity
Project, the President’s Regulatory Initiative,
and other projects formed to identify methods
to reduce the regulatory burden on banks.
• Developing and implementing new or amended
policies and procedures for corporate ac¬
tivities, including: revised procedures for per¬
forming background checks; guidelines on
processing mobile branch filings; guidelines
on processing fixed rate annuity subsidiary
filings; and guidelines on the sale of subor¬
dinated debt among affiliates.
• Advising and consulting with OCC policy¬
makers on issues involving the CRA, liquida¬
ting national banks, and proposed derivative
product operating subsidiaries.
• Preparing new delegations of authority to en¬
hance the efficiency of the OCC’s processing
of corporate filings.
The division also continued to monitor corporate ac¬
tivities operations through the Licensing Information
System and a comprehensive quality control program.
Data from the Licensing Information System is used to
produce the OCC’s "Weekly Bulletin,” a compilation of
corporate applications involving national banks, as well
as summary tables for the Quarterly Journal, and other
statistical summaries of the OCC’s corporate activities
operations. Under the quality control program, the
OCC’s corporate activities operations were also
reviewed in district offices and in the Multinational
Banking Department in Washington. Targeted reviews
of conditionally approved and denied corporate ap¬
plications also were completed.
Corporate Activity
The Corporate Activity Division coordinates all cor¬
porate applications processed in the OCC's districts
and headquarters. The applications are processed ac¬
cording to 12 CFR 5, the Comptroller's Manual for
National Banks, and the Comptroller’s Manual for Cor¬
porate Activities. These applications involve new bank
charters, consolidations and mergers, corporate reor¬
ganizations, conversions of state banks to national
charters, operating subsidiaries, branches, customer-
bank communication terminals (CBCTs), head office
and branch relocations, capital changes, and federal
branches and agencies of foreign banks. The division
evaluates and processes notices of change in control¬
ling ownership of national banks and requests for ex¬
ceptions filed under the Depository Institutions
Management Interlocks Act. Upon request from share¬
holders dissenting to a merger, consolidation, or con-
19
version involving national banks, the division also con¬
ducts appraisals of bank stocks.
The division also provides recommendations to OCC's
senior management with respect to the disposition of
applications not delegated to the district offices.
The Corporate Activity Division contributes summaries
of selected corporate decisions to every issue of the
Quarterly Journal. In 1992, the following corporate
decisions were of particular importance because they
were precedent setting or otherwise represented is¬
sues of importance:
• The OCC approved three Competitive Equality
Banking Act of 1987 (CEBA) credit card bank
applications for retail companies wishing to
issue "private label" credit cards.
• The OCC approved proposals from national
banks in Indiana, Michigan, Nebraska, and
New York to provide mobile branching/CBCT
branching services to their customers. These
approvals were the first for these states.
• The OCC granted its approval for a national
bank in Nebraska to acquire an affiliated state-
chartered trust company in Wyoming as an
operating subsidiary. The OCC found this
cross-state transaction permissible because it
ruled that fiduciary services do not constitute
"core banking” and are therefore not subject to
restrictions found in 12 U.S.C. 36.
• The OCC approved a national bank’s applica¬
tion to expand the services of an existing
operating subsidiary to facilitate debt/equity
swaps of Argentine debt held under debts
previously contracted (DPC) authority. The
transaction would allow the applicant to hold
shares in Argentine companies acquired DPC,
disposing of DPC assets over time. The
proposal raised new issues for the OCC with
respect to national banks’ DPC authority: (1)
whether national banks may pool a collection
of DPC assets under a “DPC holding sub¬
sidiary," (2) whether a national bank may divest
of such assets by selling its shares in the
subsidiary over time, and (3) whether a limited
amount of non-DPC assets may be included in
the bank’s recovery of its original loan amount.
The OCC concluded that it is a permissible
exercise of a national bank’s DPC authority to
use the methods requested by the bank to
dispose of DPC property when the bank
demonstrates a legitimate business purpose
for such methods The OCC imposed various
conditions in connection with the proposal
relating to supervisory and policy matters.
• The OCC approved an application filed by an
insurance company to acquire a national trust
bank. Although some of the insurance com¬
pany’s subsidiaries were engaged in secur-
ities-related activities, the OCC concluded that
the company's ownership of a national trust
bank was not prohibited under the Glass-
Steagall Act. The proposed trust bank would
provide custody services to mutual funds cur¬
rently serviced by an affiliate, in addition to
providing traditional trust services such as per¬
sonal and corporate trusts, securities settle¬
ment, general investment advisory and
management services, common fund ad¬
ministration, and pension fund services.
• The OCC approved a series of applications
designed to facilitate the partial purchase of
certain assets of a troubled national bank, in¬
cluding its entire trust operation, and the as¬
sumption of certain deposit liabilities. The
target bank, which was placed in voluntary
liquidation after the purchase, retained a
sizable portfolio of distressed loans and
foreclosed properties as well as a significant
amount of insured certificates of deposits. As
a matter of policy, a bank-in-liquidation
generally is precluded from retaining insured
deposits. However, because the target bank’s
parent was operating under an enforcement
action requiring divestiture of its ownership in
the target bank, the OCC approved the appli¬
cations. The OCC also obtained the coopera¬
tion of federal and state bank regulators to
complete the transaction and avoid the pos¬
sible failure of the bank.
• The OCC approved a request by a bank to
increase the servicing portfolio of its asset
management subsidiary up to a specific dollar
amount. Prior approvals for operating sub¬
sidiaries to conduct asset management ser¬
vices had been granted only after the OCC
reviewed the specific contract in question. The
proposal was conditioned on all future con¬
tracts complying with the OCC's guidelines on
asset management (BC-254).
• In the aftermath of Hurricane Andrew, the OCC
expedited an approval that permitted a bank to
establish seven temporary check cashing
facilities. These approvals were granted on the
date the branch requests were received and
permitted the applicant to provide banking ser-
20
loans to small businesses;
vices to areas of south Florida hardest hit by
Andrew. The OCC authorized the bank to es¬
tablish temporary modular structures as well as
mobile vehicles.
• The OCC responded to a bank's inquiry re¬
garding provision of accommodation services
among bank affiliates. (See interpretive letter
number 610 published in the "Interpretations”
section of this issue.)
Economic and Policy Analysis
The Economic and Policy Analysis Department com¬
prises three divisions: Economic and Regulatory Policy
Analysis, Banking Research and Statistics, and
Strategic Analysis. The department provides policy
analysis and advice on a variety of issues facing the
OCC, drafts congressional testimony, monitors the
financial health of the banking system to identify pos¬
sible sources of systemic risk, develops the OCC’s
priority objectives, and evaluates how changes in the
structure of the banking industry and in the regulatory
environment could effect OCC operations.
Economic and Regulatory Policy Analysis
The Economic and Regulatory Policy Analysis Division
(ERPA) helps develop and explain major OCC public
policy positions. It advises senior OCC officials about
the regulation and the operation of the financial ser¬
vices industry, and it develops proposals to address
policy issues raised by other agencies, Congress, and
the public. ERPA also provides analytical assistance
and advice on economic issues to other OCC divisions.
In 1992, ERPA staff drafted congressional testimony
and compiled related briefing materials for the Comp¬
troller and other senior OCC officials. Testimony
presented in 1992 included the following issues:
• the condition of the banking system;
• OCC supervision of troubled real estate loans;
• real estate appraisals;
• credit availability;
• the extent of discrimination in residential mort¬
gage lending;
• regulatory burdens on banks;
• bank mergers;
• the impact of FDICIA’s prompt corrective action
provisions on the number of bank failures; and,
• the OCC’s equal employment opportunity and
minority contracting programs.
In 1992, ERPA also worked on regulatory issues to
interpret and implement the requirements of FDICIA.
Staff worked on the prompt corrective action regulation,
the study of regulatory burdens, risk-based deposit
insurance, and interest rate risk. Staff also contributed
to ongoing OCC and interagency working groups deal¬
ing with such matters as recourse, intangible assets,
bridge loans, collateralized transactions, and financial
derivatives.
During 1 992, ERPA also helped formulate OCC respon¬
ses to policy issues raised in various studies, including
those by the General Accounting Office (GAO), the
Congress, and private sector analysts. Issues ex¬
amined included the adequacy of OCC supervisory
policies and practices, the responsibility of large banks
for recent adverse economic conditions, and the sol¬
vency of large U.S. banks.
The analytical support ERPA provided to other OCC
divisions covered issues such as OCC efforts to
measure interest rate risk, the President's initiative to
reduce regulatory burdens, and proposals to amend
the Commodity Exchange Act. ERPA also worked on
antitrust issues relating to banking and analyzed a
Federal Reserve Board proposal to liberalize rules on
the securities underwriting activities of nonbank sub¬
sidiaries of bank holding companies.
Banking Research and Statistics
The Banking Research and Statistics Division (BR&S)
reports on the condition of the banking system,
analyzes trends affecting the condition of banks, and
assesses the risks and returns of major banking ac¬
tivities.
The division produces annual reports on the condition
of commercial banks that are provided to OCC offices,
other agencies, congressional committees, and the
general public. The 1992 annual report highlighted the
decade-long deterioration in bank performance and
changes in bank portfolio composition, including the
declining volume of banks’ commercial and industrial
loans and the increasing volume of real estate loans
and investment securities.
21
The division also produces regular reports on the con¬
dition of national banks. An annual report on the condi¬
tion of national banks compared performance
indicators for the last decade across the OCC’s dis¬
tricts. Quarterly reports on the condition of national
banks are issued as press releases and published in
the Quarterly Journal. In 1992, BR&S completed four
such reports covering the last quarter of 1991 through
the third quarter of 1992. The reports highlighted im¬
provements in banks’ earnings, banks' continuing
credit-quality problems, and the causes for recent in¬
creases in banks' securities holdings.
To analyze trends affecting the condition and perfor¬
mance of banks, BR&S also continued to maintain
regular contact with the OCC’s district environmental
analysts. In 1992, BR&S hosted a meeting of these
analysts to discuss policy developments and economic
issues affecting national banks in the OCC's districts.
BR&S also investigates special topics that affect bank
performance, such as market value accounting and
real estate markets. In 1992, BR&S studied the likely
effect of requiring banks to mark their securities
portfolios to market. BR&S staff also participated in
interagency working groups implementing standards
for real estate lending required by section 305 of FDICIA.
Strategic Analysis
The Strategic Analysis Division (SA) analyzes the
operational implications of major events and trends
affecting the banking industry or the OCC, and coor¬
dinates the OCC’s planning process.
During 1992, the division analyzed the effect on OCC
operations of proposals on banking and regulatory
reform and recommended solutions to those proposals.
The division also worked with other OCC units to imple¬
ment FDICIA and maintained a system for reporting on
and tracking the status of the agency's activities to
implement the law. SA also analyzed the impact of
FDICIA on OCC’s staffing needs. It developed an over¬
all target for 1993 and allocations for major OCC
departments. SA prepared planning assumptions and
directions for OCC managers to use when developing
a unit's annual plans, staffing requests, and budget
submissions. The 1993 planning assumptions high¬
lighted the need for the OCC to completely and effi¬
ciently implement FDICIA, particularly its annual
examination requirements. The division also prepared
the OCC's overall priority objectives for 1993.
During 1992, the division prepared responses to Con¬
gress on the OCC’s supervisory activities and resources.
SA updated the OCC’s projections for consolidation of
the banking industry and analyzed the impact of future
consolidation on the OCC’s resource needs. The
division also estimated the budgetary impact of merg¬
ing the OCC with OTS.
Law Department
In 1992, the Law Department reorganized its Washing¬
ton divisions to enhance certain legal practice areas
such as international law and foreign bank regulatory
matters, consumer law issues, and bank fiduciary prac¬
tices. The six Law Department divisions are now as
follows: Litigation; Enforcement and Compliance;
Legislative, Regulatory, and International Activities;
Securities, Investments, and Fiduciary Practices; Bank
Operations and Assets; Corporate Organization and
Resolutions.
Litigation
The Litigation Division represents the OCC in court.
During 1992, the courts handed down a number of
significant judicial decisions involving the OCC.
Several of these decisions concerned the authority of
national banks to engage in insurance activities:
• In February, the United States Court of Appeals
for the District of Columbia Circuit held that 12
U.S.C. 92, which authorizes any national bank
located in a town of fewer than 5,000 in¬
habitants to sell insurance generally as an
agent, was inadvertently repealed in 1918 and
may no longer be used as authority for national
banks to engage in insurance agency ac¬
tivities. Independent Insurance Agents of
America v. Clarke, 955 F.2d 731 (D.C. Cir.
1992). As a result, the court invalidated an
OCC decision to allow a national bank’s operat¬
ing subsidiary to sell insurance from a small
town in Oregon.
• In June, the U.S. Court of Appeals for the
Second Circuit held that section 92 was not
repealed and is still in effect. American Land
Title Ass'n v. Clarke, 968 F.2d 150 (2d Cir.
22
1992). The court also held that section 92
prohibits by implication any insurance activity
by national banks not expressly authorized by
section 92, including selling title insurance.
• In August, the United States District Court for
the Eastern District of Kentucky held that sec¬
tion 92 is still in effect and that state law cannot
bar a national bank from exercising the in¬
surance power conferred by that statute.
Owensboro National Bank v. Moore, 803 F.
Supp. 24 (E.D. Ky. 1992).
The United States Supreme Court has agreed to hear
Independent Insurance Agents, but a petition for cer¬
tiorari on American Land Title was still pending at
year-end 1 992. Owensboro National Bank is on appeal
before the U.S. Court of Appeals for the Sixth Circuit,
but that court of appeals is holding the case in
abeyance pending the Supreme Court’s decision in
Independent Insurance Agents.
In 1 992, several cases dealt with the ability of the OCC
to protect confidential examination information from
parties seeking documents for use in private sector
litigation pursuant to 12 CFR 4.19. The U.S. Court of
Appeals for the District of Columbia Circuit recognized
the existence of a bank examination privilege. In re:
Subpoena Served Upon the Comptroller of the Curren¬
cy and the Secretary of the Board of Governors of the
Federal Reserve System, 967 F.2d 630 (D.C. Cir. 1992).
In determining whether bank examination documents
must nonetheless be disclosed, however, the court held
that the OCC must consider, at a minimum, the relevance
of the documents, the availability of other evidence, the
seriousness of the litigation, the role of the government,
and the possible future chilling effect of disclosure on
government employees. Separately, the U.S. District
Court for the District of Columbia held in Mid-State Federal
Savings Bank v. First Florida Banks, Inc. (October 7, 1 992)
that the OCC must produce examination documents con¬
taining purely factual material. In another case, Lerch v.
First Citizens Bancorp (October 20, 1 992), the same court
ordered the OCC to produce several examination reports
in their entirety.
Several significant cases related to the preemption of
state law. The U.S. District Court for the District of
Minnesota held that a national bank may, pursuant to
1 2 U.S.C. 85, export credit card late fees to out-of-state
customers, even if the law of the customer’s home state
prohibits such fees. Tikkanen v. Citibank (South
Dakota), N.A., 801 F. Supp. 270 (D. Minn. 1992). In
another case relating to the preemption of state law, the
U.S. District Court for the District of Idaho held that a
national bank is not required to comply with a state law
prohibiting banks from conducting business on Satur¬
day. State of Idaho v. Security Pacific Bank Idaho, N.A.,
800 F. Supp. 922 (D. Idaho 1992).
In a case resulting from an OCC enforcement action,
the U.S. District Court for the Southern District of Texas
granted a preliminary injunction prohibiting enforce¬
ment of a provision of a temporary cease and desist
order against three national banks. The court held that
the OCC had not shown that an alleged unsafe or
unsound practice constituted an imminent threat to the
banks. First National Bank of Bellaire v. Office of the
Comptroller of the Currency (S.D. Tex. September 8,
1992). The OCC chose not to appeal this decision.
In another significant case, the United States Claims
Court dismissed a suit filed by shareholders of a closed
bank. Golden Pacific Bancorp v. Office of the Comp¬
troller of the Currency, 25 Cl. Ct. 768 (Cl. Ct. 1992). The
shareholders argued that the OCC’s action closing the
bank constituted the taking of property without just
compensation. The Claims Court rejected this argu¬
ment, relying in part on prior case law that has recog¬
nized the highly regulated nature of banking and the
shareholders’ investment expectations.
Another enforcement action resulted in litigation con¬
cerning an interpretation of the Truth in Lending Act.
First National Bank of Council Bluffs v. Office of the
Comptroller of the Currency, 956 F.2d 1456 (8th Cir.
1992). The OCC had issued a cease and desist order
against the bank for violations of the Truth in Lending
Act related to improper disclosure of the annual per¬
centage rate for adjustable rate mortgages. The OCC
required the bank to reimburse all customers for pay¬
ments made in excess of the amount disclosed since
the last examination of the bank that had covered
compliance with the Truth in Lending Act. The U.S.
Court of Appeals for the Eighth Circuit agreed that the
bank had violated the Truth in Lending Act but decided
that the reimbursement could apply only to violations
occurring after the most recent OCC examination of the
bank. The OCC chose not to pursue Supreme Court
review of the decision.
The Seventh Circuit issued a significant decision in the
trust area. First National Bank of Chicago v. Clarke, 956
F.2d 1360 (7th Cir. 1992). The court upheld the OCC’s
interpretation of 1 2 CFR 206. 1 7(6), which governs cash
and in kind distributions from common trust funds. The
OCC had denied permission to the bank, as trustee of
a real estate investment fund, to distribute individual
properties owned by the funds to withdrawing inves¬
tors. The court held that the distributions must be given
in cash or as pro rata shares in the fund's property;
distribution of whole properties was not acceptable.
23
The U S. District Court for the District of North Dakota
issued a decision relating to a bank merger approved
by the OCC. Nodak Bancorporation v. Clarke (D.N.D.
1992). The district court held that bank shareholders
could not approve a merger in which shareholders of
the same class of stock received different considera¬
tion for their shares. As a result, the OCC lacked
authority under 12 U.S.C. 215a to approve a merger
in which the majority shareholders obtained shares
in the resulting bank while minority holders of the
same class of shares were forced to accept cash.
The U.S. Court of Appeals for the Eleventh Circuit had
previously reached the same result. See Lewis v.
Clarke , 911 F.2d 1558 (11th Cir. 1990). Nodak is
currently on appeal before the U.S. Court of Appeals
for the Eighth Circuit.
Enforcement and Compliance
The Enforcement and Compliance Division (E&C), in
conjunction with the districts, recommends administra¬
tive actions and presents and litigates these actions on
behalf of the OCC in administrative proceedings. The
division may also help defend these actions if they are
challenged in United States courts of appeals. E&C
also handles challenges to temporary cease and desist
orders and suspensions which have been filed in dis¬
trict court. The division also supports criminal law en¬
forcement agencies and provides advice on
enforcement and compliance issues to senior OCC
officials.
During 1992, the OCC issued 158 commitment letters,
41 memoranda of understanding, 130 formal agree¬
ments, 93 cease and desist orders, 38 removals, and
1 82 civil money penalties (CMPs). The OCC also issued
16 temporary cease and desist orders and 2 suspen¬
sions. E&C handled nondelegated actions, while the
OCC's districts handled delegated actions. In its ad¬
ministrative cases, the division held prehearing con¬
ferences and conducted 3 administrative hearings.
One hearing in 1992 involved the assessment of a
$25,000 CMP and a prohibition against a bank's former
CEO. The notices alleged that the CEO had engaged
in violations of law and reckless unsafe and unsound
banking practices, including causing the bank to wire
bank funds to various members of the CEO's family
without obtaining the necessary authorizations.
Another alleged violation involved the payment of il¬
legal dividends. The hearing was held in September;
an administrative law judge had not yet issued a
decision by year-end 1992.
A second hearing involved a cease and desist action
seeking $219,000 in restitution and a prohibition
against a forme r bank president The OCC alleged that
the former president had engaged in unauthorized
securities trading which resulted in a substantial loss to
the institution. The hearing was also held in September;
the administrative law judge's recommended decision
was pending at year-end 1992.
Another hearing involved assessment of a $5,000 CMP
against a former bank president for alleged violations
of law, including call report, insider, and affiliate viola¬
tions. An administrative law judge has heard this matter;
a decision is pending.
Another significant action involved the suspension of
the chairman of the board of a bank. The OCC charged
that the individual had violated the bank’s lending limit,
received the proceeds of a loan to a third party, caused
the bank to be in noncompliance with a cease and
desist order, and engaged in other violations of law and
unsafe and unsound practices. The OCC successfully
defended a challenge to the suspension in district
court. The underlying removal action is pending before
an administrative law judge.
In another action, the OCC suspended the chairman of
a bank who the OCC charged had engaged in
numerous violations of law, including lending limit, in¬
sider and affiliate violations, and unsafe and unsound
practices. The OCC also charged that the chairman
had caused the bank to indemnify certain directors and
former directors for legal expenses associated with a
contested CMP action, in violation of the OCC's regula¬
tion prohibiting indemnification in such cases where the
OCC prevails. A challenge to the suspension is pend¬
ing in district court.
The OCC also brought a series of actions against 13
former officers, directors, and consultants of four loose¬
ly related banks in Connecticut. The investigation of
these violations, which was conducted jointly with the
OTS, brought charges of unsafe and unsound lending
practices at the banks and a related savings and loan.
The OCC is seeking approximately $30 million in fines
and restitution against these individuals, as well as
eight prohibition actions. The OCC issued temporary
cease and desist orders against 10 of the respondents
in order to restrict asset transfers. It also required the
individuals to post security in the amount of the restitu¬
tion sought against them. The OCC also obtained a
prejudgment attachment order in district court against
one former director. Hearings in these actions are
scheduled for February through April 1993.
The OCC placed a bank into conservatorship after an
examination and investigation disclosed that the bank
had engaged in alleged violations of law, unsafe and
unsound practices, and noncompliance with a cease
and desist order The bank’s shareholders have filed a
24
challenge in district court to the conservatorship. The
conservatorship is ongoing.
In other activities in 1992, E&C attorneys worked close¬
ly with the Department of Justice’s (DOJ) Interagency
Bank Fraud Working Group (BFWG). The BFWG con¬
tinues to improve coordination and cooperation be¬
tween the federal financial institutions regulatory
agencies and the DOJ. Some of the division's contribu¬
tions to the BFWG are as follows:
• participating in all BFWG meetings;
• working with the DOJ’s special counsel to en¬
courage prosecution of criminal referrals con¬
sidered priorities by the OCC, communicating
OCC efforts to obtain grand jury information,
and providing OCC input into DOJ's quarterly
report to Congress on white collar crime;
• supporting the OCC’s participation in the
FFIEC's testifying school;
• contributing to the Financial Crime Enforce¬
ment Network (FinCEN) Oversight Board,
which is overseeing the development of an
interagency database for criminal referrals and
enforcement actions;
• working to develop a revised criminal referral
form and a revised regulation for reporting
crimes;
• updating the Bank Fraud Directory;
• working with other agencies to improve access
to grand jury information;
• working with the BFWG to implement guide¬
lines on asset forfeitures authorized under the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA); improving
records retention, tracing of international as¬
sets, background checks, and preserving priv¬
ileges when agency records are transferred;
and,
• participating in local Bank Fraud Working
Groups.
In 1992, the OCC also continued to detail an E&C
attorney as a special assistant United States Attorney
in a major bank fraud case. The case, which had
resulted from a criminal referral and subsequent inves¬
tigation by the OCC, involved a related group of in¬
dividuals who allegedly attempted to defraud a number
of financial institutions through the presentation of mil¬
lions of dollars of worthless debentures. The case in¬
volved more than 20 financial institutions, including
national banks, state banks, savings and loan associa¬
tions, mortgage companies, trust companies, and off¬
shore banks. In 1992, seven individuals pled guilty to
various criminal offenses including bank fraud, misap¬
plication of funds, and interstate transportation of
money taken by fraud.
The division also participated in working groups formed
to implement certain provisions of FDICIA, including
the prompt corrective action (PCA) and safety and
soundness standards provisions. The OCC promul¬
gated its final PCA regulation in 1992.
E&C’s offshore shell bank unit continues to provide
information and expert testimony to local, national, and
international law enforcement authorities. The division
also continued to alert the banking industry to fraud¬
ulent or questionable offshore shell bank practices.
Legislative, Regulatory, and International
Activities
The Legislative, Regulatory, and International Activities
Division (LRIA) is responsible for providing legal advice
on legislative and regulatory issues, as well as legal
issues relating to international banking and finance. It
also provides legal advice on the management and
operations of the OCC. The division analyzes proposed
banking legislation and regulations, providing advice
on legal issues arising therefrom. The division also
coordinates interagency initiatives involving banking
legislation and regulation, including matters relating to
international bank regulation and treaties affecting the
financial services industry.
In 1992, LRIA coordinated analysis of all proposed
banking legislation introduced during the second ses¬
sion of the 102nd Congress. If reviewed legislation
relating to the OCC’s supervision of national banks,
especially matters such as real estate appraisals;
leverage limits; compensation standards for bank
directors, officers, and employees; and insider lending.
The division also provided advice on technical amend¬
ments to FDICIA, the enforcement authority of the OCC
and the other banking agencies, consumer protection,
community development, and securities and com¬
modities issues. LRIA also helped prepare OCC testi¬
mony before Congress, helped formulate OCC
positions on pending legislation, responded to con¬
gressional inquiries, and drafted OCC legislative initia¬
tives.
LRIA’a regulatory duties included reviewing and coor¬
dinating the large volume of rules and regulations man¬
dated by FDICIA and assisting in the development of
25
other OCC rules and notices. The division prepared the
OCC's semiannual agenda of regulatory actions and
the OCC regulatory objectives for the regulatory pro¬
gram of the United States government. In 1992, the
OCC promulgated 29 rules and notices; an additional
37 were pending at year-end. Among the most note¬
worthy were:
• a final rule on risk-based capital guidelines;
• a final rule on real estate appraisals;
• proposed and final rules on prompt corrective
action;
• proposed and final rules on one-to-four family
residential construction loans;
• proposed and final rules on examination and
supervision fees;
• proposed and final rules on real estate lending
standards;
• proposed and final rules eliminating duplica¬
tive securities registration and reporting re¬
quirements;
• a proposed rule on standards for safety and
soundness;
• a proposed rule on interest rate risk;
• a proposed rule on purchased mortgage ser¬
vicing rights and other intangibles; and,
• a proposed rule on multifamily housing loans.
The division coordinated several projects to identify
and reduce regulatory burden on the banking industry
such as the an interagency study mandated by section
221 of FDICIA. It participated in the President's
Regulatory Initiative, which required review of all OCC
regulations and programs that may impose unneces¬
sary burdens on national banks or the public. LRIA
also worked on the Regulatory Uniformity Project,
serving as the OCC's liaison to other federal banking
agencies.
In 1992 LRIA assumed additional responsibilities for
international banking matters. LRIA provided legal ad-
/ice on the effect of new FDICIA provisions on OCC
supervision and examination of federal branches and
agencies of foreign banks. It also worked with the
Federal Reserve Board and the Department of Treasury
to implement other regulations and to prepare reports
to Congress on foreign bank issues. LRIA also helped
draft the financial services chapter of the North
American Free Trade Agreement, provided legal sup¬
port to Treasury negotiators in bilateral meetings on the
General Agreement on Trade in Services, and reviewed
draft documents of the Basle Committee on Banking
Supervision.
In 1992, LRIA also provided legal advice on OCC
administrative matters such as procurement, real es¬
tate leasing, human resources, and financial manage¬
ment. It administered OCC's ethics policies and the
Department of Treasury’s standards of conduct. The
division monitored new uniform standards of conduct,
financial disclosure rules, and ethics training require¬
ments issued by the Office of Government Ethics
(OGE), prepared revised standards of conduct for OCC
employees, and revised the OCC’s confidential finan¬
cial disclosure system.
Securities, Investments, and Fiduciary
Practices
The Securities, Investments, and Fiduciary Practices
Division (SIFP) provides legal counsel to the OCC and
advises the public on federal securities and banking
laws related to bank securities activities, bank trust
matters and collective investment funds, bank cor¬
porate practices, and bank investments.
SIFP administers and enforces the federal securities
laws affecting national banks with publicly traded
securities, including the Securities Exchange Act of
1 934 (Exchange Act) and the OCC's related disclosure
regulations at 1 2 CFR 1 1 . The division also administers
and enforces the OCC’s securities offering disclosure
rules (12 CFR 16) which govern national banks' public
and private offers and sales of their securities.
SIFP also administers the OCC's enforcement program
to assure national bank compliance with federal
securities laws applicable to bank municipal and
government securities dealers, bank transfer agents,
and other bank securities activities. The division is the
OCC's liaison to federal and state securities regulatory
agencies, including the Securities and Exchange Com¬
mission (SEC).
During 1992, SIFP conducted investigations and took
enforcement actions against national banks and af¬
filiated persons for violations of federal securities and
banking laws. Noteworthy enforcement initiatives in
1992 included:
• Taking joint actions with the SEC and the
Federal Reserve Board against nearly 100
government securities brokers and dealers for
violations in their government securities ac-
tivities. The OCC issued cease and desist or¬
ders and assessed civil money penalties
against 33 of these government securities
brokers and dealers that were national banks.
• Investigating alleged violations by several na¬
tional banks of the anti-tying restrictions of 12
U.S.C. 1972 related to the banks' underwriting
activities.
• Censuring a national bank transfer agent for
violating SEC transfer agent rules on the
safeguarding and destruction of cancelled cor¬
porate debt certificates.
• Assessing a civil money penalty and removing
an independent accountant from banking for
violations of law related to work performed for
a national bank.
• Assessing a civil money penalty against an
“institution affiliated party" for violations of the
OCC’s securities offering disclosure rules
found at 12 CFR 16.
• Directing five national banks to rescind their
securities offerings because of material omis¬
sions or misstatements in the offerings.
• Investigating allegations that certain national
banks were improperly participating in the
market for debt of lesser developed countries.
• Barring a former employee of a national bank
dealer department from association with any
municipal or government securities broker or
dealer following conviction for accepting
bribes from a securities customer and censur¬
ing and suspending that employee's super¬
visors for failing to supervise that person's
violations of the antifraud provisions of the
federal securities laws.
• Assessing civil money penalties against two
former employees of a failed national bank for
unauthorized sales to depositors of parent
holding company commercial paper.
• Removing a president of a national bank in¬
volved in manipulative purchases and sales of
bank holding company stock.
In 1992, SIFP also prepared opinions relating to the
fiduciary activities of national banks. Significant
opinions included the ability of national banks to pay
referral fees to banks and others who refer trust busi¬
ness to a bank’s trust department; the requirement that
national bank collective investment funds generally
value their holdings of guaranteed investment con¬
tracts at market value; whether it is a conflict of interest
for bank trust officers to accept travel and entertain¬
ment from companies providing trust services to the
bank; and the OCC’s view of line-item disclosure of
bank management fees charged to collective invest¬
ment funds.
In the securities, investments, and corporate practices
area, the division completed opinions on the ability of
national banks to sell stock to an unlimited number of
"accredited investors" under the private placement
exemption at 12 CFR 16.5; federal preemption of state
laws requiring state registration and examination of
national bank securities activities; the authority of na¬
tional banks to implement certain stock option plans
investing in the bank’s stock; the OCC’s policy on the
use of abbreviated information statements in merger
transactions; the ability of national banks to purchase
privately placed securities; and the ability of national
banks to publicly issue subordinated debt securities.
SlFP’s regulatory projects included publication of sub¬
stantially similar disclosure regulations for national
banks as issued by the SEC under the Exchange Act.
SIFP also began revising the OCC’s securities offering
disclosure rules. Other regulatory matters in which the
division participated in 1992 included: a review of the
agency's regulations under the President’s Regulatory
Initiative and assisting in drafting regulations required
by FDICIA, such as the conservatorships, bank execu¬
tive compensation, prompt corrective action, and ac¬
counting regulations.
As in past years, the division reviewed offering circulars,
abbreviated information statements, notices of nonpublic
offerings, registration statements, annual and special
meeting proxy materials, periodic reports, and other
reports filed with the OCC under the Comptroller’s
securities disclosure rules and merger application proce¬
dures. SIFP also continued to contribute to the SEC’s
enforcement and disclosure review responsibilities by, for
example, arranging for the SEC to review bank examina¬
tion reports and workpapers related to SEC enforcement
cases. SIFP also provides the SEC with information on
national bank subsidiaries of bank holding companies
filing securities disclosures with the SEC. In 1992, the
division also referred potential violations of securities laws
under the SEC’s jurisdiction to the SEC and subsequently
assisted in the SEC investigations.
Bank Operations and Assets
The Bank Operations and Assets Division (BOAD) is
responsible for legal issues relating to general bank
powers under the National Bank Act, Bank Holding
27
Company Act, Federal Deposit Insurance Act and other
statutes. The division also provides interpretations and
advice on questions relating to the capital of national
banks, lending limits, real estate, and consumer protec¬
tion laws.
During 1992, BOAD provided legal counsel on issues
relating to OCC bank examination and compliance
matters and national bank products and services.
Noteworthy legal advice, opinions, and comment
prepared by BOAD in 1992 included:
Advisory Matters*
• Payment of a referral fee to bank customers
and others who refer new demand deposit
customers to a bank.
• The applicability to national banks of a pro¬
posed New Jersey regulation to implement the
New Jersey Consumer Checking Act.
• The permissibility of certain national bank com¬
munity development investment proposals.
• The relationship between other real estate
owned (OREO) and real estate that must be
accounted for as OREO because of an in¬
substance foreclosure.
• Whether it is permissible for national banks to
purchase Federal Home Loan Mortgage Cor¬
poration preferred stock.
• Clarification of whether national banks must
notify the OCC when expenditures for OREO
are made.
• Whether national banks are eligible to pur¬
chase participation certificates that represent
interests in pools of FHA-insured property im¬
provement loans.
• The applicability of national bank lending limits
to an extension of credit secured by residential
mortgage loans offered by a federal savings
bank.
• The applicability of new real estate appraisal
requirements to various national bank transac¬
tions.
'For copies of those end other interpretations issued by OCC staff in
1992 seenumbe s 2 4 of volume 1 1 of the Quarterly Journal and the
interpretations" section ol this issue
• Whether a national bank may acquire owner¬
ship of an insurance policy in satisfaction of a
debt previously contracted (DPC).
• Whether a bank may use a prime rate published
by the Wall Street Journal as an index for
adjustable rate mortgage loans.
Regulations
• Amendment to 12 CFR 34 to exempt certain
transactions from the requirements of the real
estate appraisal rule.
• Amendment to 12 CFR 4 to implement Freedom
of Information Act amendments contained in the
Freedom of Information Reform Act of 1986.
• Amendment to 12 CFR 3 to revise risk-based
capital guidelines relating to one-to-four family
residential properties.
• Amendment to 1 2 CFR 3 to incorporate clarify¬
ing and technical changes.
• Amendment to 12 CFR 34 to incorporate
FDICIA-mandated real estate lending stand¬
ards for national banks .
Paralegal Unit
BOAD’s paralegal specialists provide services in the
consumer and other areas, including reviewing and
responding to consumer complaints involving national
banks. The paralegals also handle appeals of con¬
sumer complaints forwarded by OCC’s six districts.
During 1992, the unit received 1,128 consumer com¬
plaints and completed responses to 1 ,032 complaints.
As in previous years, the unit also provides assistance
to Law Department attorneys.
Corporate Organization and Resolutions
The Corporate Organization and Resolutions Division
(CORD) provides legal advice on structural issues such
as interstate branching, cross-industry mergers and
acquisitions, special purpose banks, and questions
relating to failing banks. It provides advice primarily to
OCC divisions such as Bank Organization and Struc¬
ture, Multinational Banking, International Banking and
Finance, and Special Supervision as well as the OCC's
district licensing officers. CORD attorneys also serve
as liaisons to OCC field examiners at selected national
banks and to the other regulatory agencies.
Significant CORD projects in 1992 included:
28
Advisory Matters
• A legal interpretation that the OCC would not
object to a proposal from a national bank in
Illinois to make deposit account services avail¬
able through affiliated banks.
• Legal advice and assistance to OCC super¬
visory personnel involved in resolving national
banks owned by First City Bancorporation of
Texas and other failing banks.
• Advice on capital and liquidity, banking, se¬
curities, and tax law issues to enable a national
bank to be recapitalized.
• Analysis of whether new technologies such as
point of sale terminals violate branching laws.
• Legal analysis leading to the OCC's decision
to permit First of America Bank- McLean County,
N.A., Bloomington, Illinois, to acquire Cham¬
pion Savings and Loan Association, Blooming¬
ton, Illinois, and to retain some of the branches
of the savings and loan association.
• Legal review and analysis of another cross-in¬
dustry merger application involving a national
bank and a savings and loan association.
Regulatory Matters
• Interim rules to establish procedures for nation¬
al banks merging or consolidating with federal
savings and loan associations.
• Regulations to implement the prompt correc¬
tive action provisions of FDICIA.
• Revision of the OCC's interpretive ruling on the
use of couriers to provide pickup or delivery
service to customers. The revision clarifies that
a national bank need not file a branch applica¬
tion with the OCC when it uses a messenger
service, provided that the service is estab¬
lished and operated by a third party and does
not operate under the name of the bank.
• Guidance on compliance with the branch clos¬
ing notice requirements of FDICIA.
• Participation in an interagency working group
which included the other financial regulatory
agencies and the Justice Department to ex¬
amine antitrust issues involving banking and
bank products.
Administration
Quality Improvement
In 1992, the OCC revised its quality improvement pro¬
gram to make it more flexible and cost effective. Quality
improvement teams were therefore better able to iden¬
tify and address operational problems on a more timely
basis.
Quality improvement teams were active in all six OCC
districts and the Washington headquarters office. In
1992, the teams sought to improve the quality of bank
supervision.
Management Improvement
Management Improvement is the focal point for OCC’s
participation in and compliance with government initia¬
tives such as privatization, productivity, information
resources management, and statutes such as the
Federal Manager's Financial Integrity Act (FMFIA). The
division also provides advice to the Senior Deputy
Comptroller for Administration on OCC compliance with
the Federal Banking Agency Audit Act (FBAAA) and
the Inspector General Act Amendments of 1988.
Management Improvement is also the OCC's liaison for
contact with the U.S. General Accounting Office (GAO)
and the Department of the Treasury’s Inspector General
(IG). Management Improvement assures timely OCC
follow-up and responsiveness to audit and investiga¬
tion findings and recommendations.
In 1992, both the GAO and the IG conducted audits of
the OCC’s bank supervision process. Management
Improvement facilitated access to OCC information
and encouraged communication between these or¬
ganizations to eliminate duplicative effort.
Resource Management
Throughout 1992, the Resource Management Depart¬
ment provided administrative programs, products, and
29
services to support OCC employees and the OCC’s
organizational goals and objectives. The department
directedrealpropertyinitiatives, updated OCC's bank
supervision and management schools, designed a
national plan for managing diversity in the workplace,
and implemented a new automated payroll/personnel
system.
Resource Management’s Administrative Services
Division oversaw expansion of the OCC's computer
center in Landover, Maryland, and the remodeling of
the Northeastern District office. The division also began
work on a disaster recovery and business resumption
plan for the Washington office.
During 1992, the department's Equal Employment
Programs Division (EEP) designed a national action
plan for managing diversity in the workplace and
sponsored training on sexual harassment. EEP also
designed a career awareness program for stay-in¬
school employees, an EEO resource guide, and
implemented an automated applicant tracking sys¬
tem.
In 1992, the Human Resources Division implemented
a new automated payroll/personnel system, introduced
several new benefits programs, revised the OCC’s Per¬
formance Management Program, and studied the "ex¬
perienced hire” program. The division continued its
efforts to assure that the OCC's programs and services
are competitive with those of the other financial
regulatory agencies.
Administrative Services
In 1 992, the Administrative Services Division undertook
projects in office space leasing and design, property
management, purchasing and contracting for goods
and services, and records management and library
services. The Real Estate and Design Services unit
oversaw expansion of the OCC's computer center in
Landover, Maryland, and the remodeling of the North¬
eastern District office in New York City. The unit also
initiated cost-reducing, long-term strategic plans for
office space, renegotiating leases or relocating offices
in the field.
The Building Services unit began work on a formal
disaster recovery and business resumption plan for the
OCC’s headquarters office. The unit also took steps to
improve security in the headquarters building.
Acquisitions Services awarded contracts for employee
benefits, relocation services, real estate services, auto¬
matic data processing hardware maintenance, micro¬
computers, and disaster recovery planning. The unit
also amended an office supplies contract to improve
service to the OCC's field offices and completed the
OCC's conversion to metered mail.
The Library and Information Services unit updated the
national filing system for bank records, improved the
management of records in the OCC's central records
office, and expanded library research services to dis¬
trict and field offices. The unit also developed a stand¬
ardized plan for organizing files and provided guidance
on its use.
Equal Employment Programs
During 1992, the Equal Employment Programs Division
(EEP) developed a plan for managing diversity, con¬
ducted briefings on equal employment, and revised
and updated the OCC’s affirmative employment goals.
The division implemented and advised Washington
and district management and employee advisory
groups on its national action plan. The plan aims to
improve the management of the OCC’s diverse
workforce. The division also conducted sexual harass¬
ment training throughout the organization and in other
agencies and sponsored training on changes in the
OCC’s equal employment complaint processing sys¬
tem. The division revised the OCC's affirmative employ¬
ment goals and plans and implemented an automated
applicant tracking system. In addition, the EEP
developed new initiatives such as a career awareness
program for stay-in-school employees and an EEO
resource guide for various federal agencies.
Training and Performance Development
In 1992, Training and Performance Development up¬
dated the OCC’s training schools, which are primarily
designed to train OCC bank examiners in techniques
of effective bank supervision. In particular, the division
helped improve the OCC's bank supervision, district
credit analysis, and district consumer compliance
schools. The unit also piloted courses for managerial
and supervisory personnel and planned for the OCC’s
conversion to the WordPerfect word processing sys¬
tem. The unit also sponsored team building sessions,
Myers-Briggs workshops, and management transition
meetings throughout the agency.
Training and Performance Development worked with
the Human Resources Division to evaluate the OCC's
"experienced hire" program to insure that these
employees receive adequate training in bank examina¬
tion techniques. The unit also piloted a program to
enhance on-the-job training received by bank ex¬
aminers. It also processed training requests from
Washington personnel, including training offered by the
OCC and the FFIEC, for over 1,400 OCC employees.
30
Human Resources
During 1992, the Human Resources Division reor¬
ganized its units, implemented new benefits programs
and a new payroll/personnel system, conducted a
study of the "experienced hire" program, and revised
the OCC's performance management program.
The division transferred the OCC’s dental/vision pro¬
gram to a new insurance carrier at a cost savings to the
agency. It also undertook a cost savings measure by
expanding the OCC’s mail order prescription drug pro¬
gram. This program encourages subscribers to use
generic drugs to maximize their personal cost savings.
The division also managed the OCC’s conversion to a
new automated payroll/personnel information system.
The conversion to the Treasury Integrated Management
Information System (TIMIS) involved a three-year, multi-
phased approach.
Working with Training and Performance Development,
the division conducted a comprehensive study of
OCC’s “experienced hire" program to assess the effec¬
tiveness of the OCC’s recruiting and training of can¬
didates directly from the banking industry. The division
also began to implement changes to the OCC’s perfor¬
mance management program to more closely link per¬
formance planning with annual evaluations, reduce
annual appraisal narrative requirements, and provide new
generic performance standards for OCC employees.
Information Resources Management
In 1 992, the Deputy Comptroller for Information Resour¬
ces Management (IRM) assumed responsibility for the
information systems divisions formerly in Systems and
Financial Management. As the senior information offi¬
cial at the OCC, the deputy comptroller is responsible
for the development and operation of automated infor¬
mation systems. During 1992, the deputy comptroller
instituted a set of guiding principles to improve all IRM
efforts so that applications and technology develop¬
ments fully support the business functions of the agen¬
cy. The deputy comptroller represents the OCC on IRM
issues at Treasury and encourages closer technical
cooperation with the other federal financial regulators.
The deputy comptroller also chairs the IRM Advisory
Committee (IRMAC), which develops policies and
priorities to guide information systems development
and use at the OCC.
Four IRM divisions report to the deputy comptroller:
applications development, systems support, super¬
visory research, and information systems coordination.
These divisions assist users and develop and operate
automated bank supervision and administrative infor¬
mation systems.
In 1992, the MIS Committee was reorganized as the
IRM Advisory Committee (IRMAC). The IRMAC
provides guidance to help ensure that information
processing resources meet the OCC's priorities. In
1992, the MIS Committee and the IRMAC established
priorities for the OCC’s 1993 office automation pro¬
gram, which will improve portable microcomputer sup¬
port for field examiners and other OCC employees.
These committees also initiated a WordPerfect conver¬
sion study and formalized a biannual microcomputer
software update program.
Information Systems Coordination
Information Systems Coordination (ISC), formerly Infor¬
mation Resources Management, is composed of two
main branches: the information center and quality as¬
surance. Division staff are responsible for information
systems planning and administrative support for all IRM
units. The division supports the deputy comptroller and
the IRM Advisory Committee by developing plans,
policies, and priorities for information systems develop¬
ment and use. The division also coordinates IRM initia¬
tives with the OCC's district offices and is responsible
for meeting Treasury’s data processing requirements.
The information center helps to assure that staff at the
OCC’s Washington headquarters office obtain and use
office automation equipment and software. It also im¬
proves query access to information on mainframe infor¬
mation systems. The quality assurance branch
develops and maintains standards to ensure high
quality products and support from IRM. It is also re¬
sponsible for maintaining security controls over auto¬
mated information systems.
In 1992, the information center was expanded to coor¬
dinate and plan the OCC’s conversion to a local area
network (l_AN). This included directly supporting the
OCC's LAN users and assuming responsibility for
query access to information in mainframe databases.
The unit also developed a consolidated plan for
upgrading the OCC’s microcomputers and for complet¬
ing the expansion of the LANs at Washington head¬
quarters in 1993.
In 1992, the quality assurance (OA) branch was
merged into the division and its programs were ex¬
panded to cover all IRM units. The branch continued to
revise the Application Development Life Cycle (ADLC),
a set of processes and procedures used to ensure that
computer applications meet the OCC’s needs. The
branch also develops and maintains standards to help
31
ensure quality and consistency of computer applica¬
tions and management control and depth for the OCC's
information systems security program.
The division also worked on an information systems
planning program to support future IRM developments
and procurements. One project involved work toward
completing a blueprint for improving the OCC’s infor¬
mation technology.
Applications Development
The Applications Development Division (ADD) is
responsible for the OCC’s application systems design,
implementation, and support. It also oversees the
agency's corporate data management program. In
1 992, ADD reorganized. Under the new structure, ADD
is organized into two information system development
branches (ISD 1 and 2), two information systems sup¬
port and research branches (ISSR 1 and 2), and a data
administration (DA) unit. The two ISSR branches are
responsible for supervision, administration, and
finance systems.
During 1992, ADD continued to develop and maintain
the OCC’s application systems, including the OCC’s
corporate activities information system; the Law
Department Management Information System (LDMIS);
the conversion to the National Finance Center’s payroll
and personnel processing; and the Home Mortgage
Disclosure Act System (HMDA). In the corporate data
management area, ADD continued to document data
used by existing application systems (SEED), provided
resources to the information systems planning project,
and published a paper on data stewardship.
Supervisory Research
Supervisory Research is responsible for assuring that
new techniques and microcomputer technology im¬
prove the OCC's supervision of national banks. Tech¬
nology such as microcomputers, networking, and
applications provides examiners with direct access to
databases as well as data and word processing. The
division develops financial modeling and advanced
financial analysis techniques for bank examiners;
tests microcomputer software tools; and analyzes
proposals involving technological applications for
bank supervision.
In 1992, the division revised the OCC's microcomputer
applications to incorporate changes resulting from new
FDICIA requirements; coordinated the development of
a field examiner’s "automated line slip application;”
implemented the OCC’s second major expert system
(IRMA), and centralized the mass processing reports
and scores through the OCC data center
Research and development continues in the area of
new techniques and supervisory applications. For ex¬
ample, the division began developing the concept of
functional "VIEWS” to better integrate technological
advances and OCC architectures into the tasks for
which a particular position is responsible.
Systems Support
The Systems Support Division (SSD), located at the
OCC’s Centre Pointe data center facility in Landover,
Maryland, operates OCC’s mainframe computer facility
and its software, along with the agency's telecom¬
munications network, both voice and data. The division
is comprised of five branches: computer operations;
database administration; systems programming;
telecommunications; and microcomputer and LAN
support.
The computer operations branch runs the mainframe
computer and oversees report processing and distribu¬
tion. The branch assures that users can access the
OCC’s mainframe computer almost continuously. The
branch also monitors and assures the security of the
Centre Pointe facility. The branch provides production
control support and assists OCC personnel with
problems dealing with mainframe and personal com¬
puters (PCs). The database administration branch
designs, builds, and maintains the OCC's physical
databases. This branch supports network and relation¬
al database structures in mainframe and PC environ¬
ments. The systems programming branch maintains
the operating systems that run the mainframe hardware
and also installs all software products used on the
mainframe. The telecommunications branch provides
advice and support on telephone systems used at
headquarters, district, field, and duty station offices. In
addition, the branch manages the OCC data com¬
munications network and value added network, which
are used when dialing in from remote locations. The
microcomputer and LAN support branch maintains the
OCC's office automation program for microcomputers
and LAN hardware and software. The branch helps
evaluate, select, and purchase office automation
equipment and software; analyzes new or improved
technology; and develops policies for office automation
hardware and software.
In 1992, the division undertook the following projects:
• converted the OCC Data Network and all OCC
locations to FTS 2000 for data and long dis¬
tance telephone service;
• selected the notebook platform as a replace¬
ment for the portable Zenith laptop and ac-
32
quired notebooks for distribution in 1992 and
early 1993;
• began testing the capabilities of relational
database software for use in developing
mainframe applications; and,
• initiated actions to budget and acquire a re¬
placement mainframe computer.
The division also conducted four disaster recovery
exercises. In these exercises, the division retrieved
required backup materials and transported them to the
disaster recovery site. Each exercise confirmed the
OCC's ability to restore computer operations at a dis¬
aster recovery site.
Financial Services (Chief Financial
Officer)
In 1992, the OCC worked to implement the Chief Finan¬
cial Officers Act of 1990 by establishing the position of
Chief Financial Officer (CFO) and a supporting or¬
ganizational structure. The CFO is responsible for over¬
seeing all financial activities relating to the OCC's
programs and operations, reporting directly to the
Senior Deputy Comptroller for Administration. The new
organizational structure allows the OCC to enhance its
budgetary systems, integrated accounting systems,
financial reporting, and internal controls and to provide
guidance to OCC management on financial issues.
Financial Policy, Review and Analysis (FPRA), Financial
Operations (FO), and Financial Systems Management
(FS) comprise the department. Each of these units are
headed by an Assistant Chief Financial Officer (ACFO).
Financial Policy, Review, and Analysis
The Financial Policy, Review and Analysis (FPRA) unit
is responsible for monitoring the OCC's revenue sources
and for recommending policies to ensure that the OCC
has sufficient funds to operate effectively. FPRA also
formulates the OCC’s budget to ensure that it reflects
the OCC’s priority objectives and the efficient allocation
of funds.
As required under the Chief Financial Officers Act of
1990, FPRA coordinated and produced the OCC's
"1991 CFO Financial Statements” package for submis¬
sion to the Office of Management and Budget. That act
required agencies to develop a financial overview of
operations and financial management in addition to
annual audited financial statements.
FPRA also assumed several other responsibilities in
1992. It conducted quality control reviews of financial
operations in the OCC's district offices as well as the
Financial Services Department in Washington. FPRA
also assumed responsibility for providing accounting
and expenditure policy guidance on issues such as the
OCC’s travel policy.
Financial Systems Management
Financial Systems Management (FS) is responsible for
the design, development, enhancement, and imple¬
mentation of financial systems. In 1992, Financial Sys¬
tems Management:
• Coordinated a modification to the OCC’s
payroll system (Time Entry (TE)) to incorporate
changes to allow the OCC to convert to the
Agriculture Department's National Finance
Center (NFC) Personnel Payroll System.
• Completed the specifications for upgrading
the OCC’s accounts payable and general
ledger systems.
• Served on the Financial Management Systems
Advisory Committee, which was created by the
Treasury Department to review, evaluate, and
formulate recommendations for proposed
changes to all of the department's financial
management systems.
• Coordinated, prepared, and submitted the
"OCC Five Year Financial Systems Plan" to the
Treasury Department as required by OMB Cir¬
cular A-127.
• Provided training to OCC staff in NFC Person¬
nel/Payroll processes and in general ledger
and accounts payable applications.
• Coordinated enhancements to financial sys¬
tems and managed production problems.
Financial Operations (FO)
The Financial Operations unit is responsible for the
day-to-day operation of the accounting system, control
of OCC’s receipts and payments, cash reconciliations,
and financial reporting.
In 1992, the unit:
• implemented the Electronic Certification Sys¬
tem to improve cash management by allowing
33
for the immediate certification of payments
through the Treasury Department;
met Treasury's goals for prompt payment under
the Prompt Payment Act;
connected the OCC's relocation system to the
OCC’s new general ledger account structure;
and,
assisted in conversion of the OCC's payroll
system, including the development of a new
time entry system.
Comptrollers of the Currency, 1863 to the present
No.
Name
Dates of tenure
State
1
McCulloch, Hugh .
May
9, 1863
Mar.
8, 1865
Indiana
2
Clarke, Freeman .
Mar.
21, 1865
July
24, 1866
New York
3
Hulburd, Hiland R .
Feb.
1 , 1 867
Apr.
3, 1872
Ohio
4
Knox, John Jay .
Apr
25, 1872
Apr.
30, 1884
Minnesota
5
Cannon, Henry W .
May
12, 1884
Mar.
1, 1886
Minnesota
6
Trenholm, William L .
Apr.
20, 1886
Apr.
30, 1889
South Carolina
7
Lacey, Edward S .
May
1 , 1 889
June
30, 1892
Michigan
8
Hepburn, A Barton .
Aug
2, 1892
Apr.
25, 1893
New York
9
Eckels, James H .
Apr.
26, 1893
Dec.
31, 1897
Illinois
10
Dawes, Charles G .
Jan.
1 , 1 898
Sept
30, 1901
Illinois
1 1
Ridgely, William Barret .
Oct.
1, 1901
Mar.
28, 1908
Illinois
12
Murray, Lawrence 0 .
Apr.
27, 1908
Apr
27, 1913
New York
13
Williams, John Skelton .
Feb
2, 1914
Mar.
2, 1921
Virginia
14
Crissinger, D.R . .
Mar
17, 1921
Mar.
30, 1923
Ohio
15
Dawes, Henry M .
May
1, 1923
Dec.
17, 1924
Illinois
16
McIntosh, Joseph W .
Dec.
20, 1924
Nov.
20, 1928
Illinois
17
Pole, John W .
Nov.
21, 1928
Sept.
20, 1932
Ohio
18
O'Conner. J.F.T .
May
11, 1933
Apr
16, 1938
California
19
Delano, Preston .
Oct.
24, 1938
Feb
15, 1953
Massachusetts
20
Gidney, Ray M .
Apr
16, 1953
Nov.
15, 1961
Ohio
21
Saxon, James J .
Nov.
16, 1961
Nov.
15, 1966
Illinois
22
Camp, William B .
Nov.
16, 1966
Mar.
23, 1973
Texas
23
Smith, James E .
July
5, 1973
July
31, 1976
South Dakota
24
Heimann, John G .
July
21, 1977
May
15, 1981
New York
25
Conover, C.T .
Dec.
16, 1981
May
4, 1985
California
26
Clarke, Robert L .
Dec.
2, 1985
Feb
29, 1992
Texas
35
No
—
2
3
4
5
6
7
8
9
10
1 1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
6
Senior Deputy and Deputy Comptrollers of the Currency 1863 to the present
Name
Dates of tenure
State
Howard, Samuel T .
May
9,
1863
Aug
1 , 1 865
New York
Hulburd, Hiland R .
Aug,
1,
1865
Jan
31, 1867
Ohio
Knox, John Jay .
Mar
12,
1867
Apr.
24, 1872
Minnesota
Langworthy, John S .
Aug,
8,
1872
Jan.
3, 1886
New York
Snyder, VP .
Jan
5,
1886
Jan.
3,1887
New York
Abrahams, J D .
Jan,
27,
1887
May
25, 1890
Virginia
Nixon, R M .
Aug
11,
1890
Mar.
16, 1893
Indiana
Tucker, Oliver P .
Apr.
7,
1893
Mar.
11, 1896
Kentucky
Coffin, George M .
Mar
12,
1896
Aug.
31, 1898
South Carolina
Murray, Lawrence 0 .
Sept
1,
1898
June
29, 1899
New York
Kane, Thomas P .
June
29,
1899
Mar.
2, 1923
District of Columbia
Fowler, Willis J .
July
1,
1908
Feb
14, 1927
Indiana
McIntosh, Joseph W .
May
21,
1923
Dec.
19, 1924
Illinois
Collins, Charles W .
July
1,
1923
June
30, 1927
Illinois
Steams, E W .
Jan
6,
1925
Nov.
30, 1928
Virginia
Await, F.G .
July
1,
1927
Feb.
15, 1936
Maryland
Gough E H .
July
6,
1927
Oct
16, 1941
Indiana
Proctor, John L .
Dec,
1,
1928
Jan.
23, 1933
Washington
Lyons, Gibbs .
Jan.
24,
1933
Jan.
15, 1938
Georgia
Prentiss, William, Jr .
Feb
24,
1936
Jan
15, 1938
Georgia
Diggs, Marshall R .
Jan.
16,
1938
Sept.
30, 1938
Texas
Oppegard, G.J .
Jan.
16,
1938
Sept.
30, 1938
California
Upham, C.B .
Oct.
1,
1938
Dec.
31, 1948
Iowa
Mulroney, A J .
May
1,
1939
Aug
31, 1941
Iowa
McCandless, R B .
July
7,
1941
Mar.
1, 1951
Iowa
Sedlacek, L.H .
Sept.
1,
1941
Sept.
30, 1944
Nebraska
Robertson, J.L .
Oct
1,
1944
Feb
17, 1952
Nebraska
Hudspeth, J.W .
Jan.
1,
1949
Aug.
31, 1950
Texas
Jennings, LA .
Sept
1,
1950
May
16, 1960
New York
Taylor, W M .
Mar.
1,
1951
Apr.
1, 1962
Virginia
Garwood, G W .
Feb.
18,
1952
Dec.
31, 1962
Colorado
Fleming, Chapman C .
Sept
15,
1959
Aug.
31, 1962
Ohio
Haggard, Holis S .
May
16,
1960
Aug
3, 1962
Missouri
Camp, William B .
Apr.
2,
1962
Nov.
15, 1966
Texas
Redman, Clarence B .
Aug
4,
1962
Oct.
26, 1963
Connecticut
Watson, Justin T .
Sept.
3,
1962
July
18, 1975
Ohio
Miller, Dean E .
Dec.
23,
1962
Oct.
22, 1990
Iowa
DeShazo, Thomas G .
Jan.
1,
1963
Mar.
3, 1978
Virginia
Egertson, R, Coleman .
July
13,
1964
June
30, 1966
Iowa
Blanchard, Richard J .
Sept.
1,
1964
Sept
26, 1975
Massachusetts
Park, Radcliffe .
Sept.
1,
1964
June
1, 1967
Wisconsin
Faulstich, Albert J .
July
19,
1965
Oct.
26, 1974
Louisiana
Motter, David C .
July
1,
1966
Sept.
20, 1981
Ohio
Gwin, John D .
Feb.
21,
1967
Dec.
31, 1974
Mississippi
Howland, W A Jr .
July
5,
1973
Mar.
27, 1978
Georgia
Mullin, Robert A .
July
5,
1973
Sept.
8, 1978
Kansas
Ream, Joseph M .
Feb
2,
1975
June
30, 1978
Pennsylvania
Bloom, Robert .
Aug.
31,
1975
Feb.
28, 1978
New York
Chotard, Richard D .
Aug.
31,
1975
Nov.
25, 1977
Missouri
Hall, Charles B .
Aug.
31,
1975
Sept
14, 1979
Pennsylvania
Jones, David H .
Aug
31,
1975
Sept.
20, 1976
Texas
Murphy, C, Westbrook .
Aug
31,
1975
Dec.
30, 1977
Maryland
Selby, H Joe .
Aug
31,
1975
Mar.
15, 1986
Texas
Homan, Paul W .
Mar.
27,
1978
Jan.
21, 1983
Nebraska
Keefe, James T .
Mar.
27,
1978
Sept
18. 1981
Massachusetts
Muckenfuss, Cantwell Fill .
Mar.
27,
1978
Oct.
1, 1981
Alabama
Wood Billy C .
Nov.
7,
1978
Jan
16, 1988
Texas
Longbrake, William A
Nov.
8,
1978
July
9, 1982
Wisconsin
Odom, Lewis G , Jr .
Mar.
21,
1979
Nov.
16, 1980
Alabama
Martin, William E .
May
22,
1979
Apr
4, 1983
Texas
Barefoot, Jo Ann .
July
13,
1979
Sept
5, 1982
Connecticut
Downey, John .
Aug
10,
1980
Aug.
2, 1986
Massachusetts
Lord, Charles E .
Apr.
13,
1981
Mar.
31, 1982
Connecticut
Bench, Robert R
Mar.
21,
1982
Sept
25, 1987
Massachusetts
Klinzmg, Robert R .
Mar
21,
1982
Aug.
21, 1983
Connecticut
Robertson, William L .
Mar
21,
1982
Sept
26, 1986
Texas
Arnold, Doyle L .
May
2,
1982
May
12, 1984
California
Weiss, Steven J .
May
2,
1982
Pennsylvania
Stephens, Martha B .
June
1,
1982
Jan
19, 1985
Georgia
Stirnweis, Craig M .
Sept
19,
1982
May
1, 1986
Idaho
Herrmann, Robert J .
Jan
1,
1983
Illinois
Manousi, Michael A
Jan
1,
1983
Feb
17, 1986
Maryland
Senior Deputy and Deputy Comptrollers of the Currency, 1863 to the present — continued
No.
Name
Dates of tenure
State
73
Marriott, Dean S .
Jan
1 1983
Missouri
74
Poole, Clifton A., Jr .
Jan
1 1983
North Carolina
75
Taylor, Thomas W .
Jan.
1, 1983
Jan
16, 1990
Ohio
76
Boland, James E., Jr .
Feb.
7, 1983
Feb
15, 1985
Pennsylvania
77
Fisher Jerry .
Apr
17, 1983
Apr.
4, 1992
Delaware
78
Patriarca, Michael .
July
10, 1983
Aug
15, 1986
California
79
Wilson, Karen J .
July
17, 1983
New Jersey
80
Winstead, Bobby B .
Mar.
18, 1984
June
11, 1991
Texas
81
Chew, David L .
May
2, 1984
Feb.
2, 1985
District of Columbia
82
Walter, Judith A
Apr.
24 1985
Indiana
83
Maguire, Francis E. , Jr .
Jan.
9, 1986
Virginia
84
Kraft Peter C .
July
20, 1986
Sept.
15, 1991
California
85
Klinzinq. Robert R .
Auq.
1 1 , 1986
Connecticut
86
Hechinger, Deborah S .
Aug.
31, 1986
Sept
14, 1987
District of Columbia
87
Norton, Gary W .
Sept
3, 1986
Missouri
88
Shepherd, J. Michael .
Jan
9, 1987
May
3, 1991
California
89
Rushton, Emory W .
Jan
21, 1987
Sept
20, 1989
South Carolina
90
Fiechter, Jonathan L .
Mar.
4, 1987
Oct.
30, 1987
Pennsylvania
91
Stolte, William J .
Mar.
11, 1987
Mar.
21, 1992
New Jersey
92
Clock, Edwin H .
Feb.
29, 1988
Jan
3, 1990
California
93
Krause, Susan F. .
Mar.
30, 1988
California
94
Coonley, Donald G .
June
29, 1988
Virginia
95
Blakely, Kevin M .
Oct.
12, 1988
Sept
27, 1990
Illinois
96
Steinbrink, Stephen R .
Apr.
8, 1990
Nebraska
97
Lindhart Ronald .
Apr.
22, 1990
July
27, 1991
Florida
98
Hartzell, Jon K .
July
29 1990
California
99
Cross, Leonora S .
Nov.
4 1990
Utah
100
Finke, Fred D .
Nov
4 1990
Nebraska
101
Kamihachi, James D .
Nov
6 1990
Washington
102
Barton, Jimmy F. .
Julv
14 1991
Texas
103
Cross, Stephen M .
July
28' 1991
Virginia
104
Guerrina, Allan B .
Apr.
19, 1992
Virginia
105
Powers, John R .
Aug
9, 1992
Illinois
37
38
OFFICE OF THE COMPTROLLER OF THE CURRENCY
Operating Plan for Bank Supervision — 1993
Frequency
The frequency of examinations of all national banks will
be, at a minimum, in accordance with the requirements
of the Federal Deposit Insurance Corporation Improve¬
ments Act of 1991 (FDICIA).
Scope
The scope of all examinations will comply, at a mini¬
mum, with the interagency definition of “Full Scope
Examination.”
Examinations will cover all areas of bank operations
where significant risk is assumed, and will focus on the
adequacy of systems and controls as written in bank
policies and as practiced.
OCC senior management will provide guidance
regarding risk areas to be given special emphasis.
Credit Analysis
Loan coverage in all banks will be sufficient to deter¬
mine the current condition of the loan portfolio, and will
allow an assessment of the adequacy of the bank’s
systems and controls in the lending area as written in
bank policies and as practiced. In all banks, loans
analyzed will include large loans, significant problem
loans, and loans to insiders. Where practical, valid
statistical sampling techniques will be used to analyze
smaller commercial loans, performance paper, and the
portfolios of less significant subsidiary banks of multi¬
bank holding companies, and to assess the adequacy
of bank systems and controls.
When sampling is not used:
(1 ) In banks over $1 billion dollars in assets, loan
coverage will be set by the examiner-in-
charge (EIC), subject to the approval of the
supervisory office.
(2) In banks under $1 billion dollars in assets,
sufficient loans will be analyzed to achieve a
minimum coverage of at least 30 percent of
the commercial loan portfolio.
Calculation of loan coverage will be made at the end of
each examination. These calculations will include all
shared national credits housed in the bank regardless
of where they are agented, and credits reviewed
through the Interagency Country Exposure Review
Committee (ICERC). Also included will be the entire
portions of the portfolio where valid statistical sampling
techniques were employed.
Compliance
Each OCC district and Multinational Division will review
all of its banks and compile a list of those to receive
compliance examinations in 1 993. At a minimum the list
will include:
(1) All banks over $1 billion in assets originally
selected for examination in 1993 under the
OCC’s compliance program.
(2) All banks under $1 billion in assets which
have not previously been selected for ex¬
amination in the OCC’s compliance sample.
(3) All other banks deemed to warrant a compli¬
ance examination as a result of the above
review.
The scope of all compliance examinations will be set
by the districts and Multinational Division, but will, at a
minimum, be sufficient to assess each bank’s CRA
performance and determine its compliance with fair
lending laws.
FDICIA Requirements
All examinations will include a review of the bank’s
compliance with relevant provision of FDICIA.
Using Other Audits
In examining for both safety and soundness and com¬
pliance, examiners will seek to take advantage of the
efficiencies afforded by using the work performed by
others such as internal audit, loan review, and external
accountants. However, the degree of reliance on this
work must be based upon the validity of conclusions
reached as assessed by the examiner’s own work.
39
Community Reinvestment Act
The Office of the Comptroller of the Currency is required
by the Community Reinvestment Act (CRA) 12 U.S.C.
2901 , et seq., to include in its annual report to Congress
a section outlining the actions it has taken to carry out
its responsibilities under the act. The CRA encourages
national banks and other insured depository institutions
to help meet the credit needs of the local communities
in which they are chartered to do business. During an
examination of a national bank, the OCC examines the
bank's record of helping to meet the credit needs of the
bank’s entire community, including low- and moderate-
income neighborhoods. The OCC also takes into ac¬
count CRA performance when evaluating national bank
applications for deposit facilities.
In 1 992, the OCC conducted CRA performance evalua¬
tions at 759 national banks. The OCC maintains a
public file of the CRA performance evaluations of these
national banks as well as other national banks ex¬
amined previously. In 1 992, 84 national banks received
an "outstanding" evaluation, 572 a "satisfactory” rating,
97 were rated as "needs to improve," and 6 national
banks were in "substantial noncompliance" with the
CRA.
So that the public, banks, and examiners will have a
better understanding of the CRA, the OCC in 1992
worked with other members of the Federal Financial
Institutions Examination Council (FFIEC) to revise and
update the “Interagency CRA Cuestions and Answers.”
The OCC and other FFIEC member agencies also
updated The Citizen’s Guide to the CRA. This booklet
is publicly available at all national banks or by contacting
the OCC or other federal financial regulatory agency.
Among issues related to compliance with the CRA, in
1992 the OCC and other FFIEC members began a
review of the CRA’s implementing regulations, assess¬
ment factors, and rating system. It also clarified what
the agencies expect with respect to documentation
maintained by financial institutions to support their per¬
formance efforts under the CRA. The FFIEC also issued
a policy statement stressing that part of a financial
institution’s CRA planning process should include an
analysis of the geographic distribution of the insti¬
tution’s lending patterns.
Another way in which the OCC carries out its respon¬
sibilities under the CRA is through its compliance pro¬
gram, which in addition to the CRA, monitors national
bank compliance with fair lending and consumer
protection laws, bank secrecy, and fiduciary activities.
One of the components of the compliance program is
to inform bank management of its compliance respon¬
sibilities. In 1992, the OCC issued over 30 bulletins,
circulars, and advisories related to compliance.
The OCC also considers CRA performance when it
evaluates an application filed by a national bank to
open a new deposit facility such as a branch. Other
applications, such as merger requests, charter conver¬
sions, or relocations, also include, among other things,
CRA evaluations. These evaluations occur whether or
not the institution's CRA performance is protested by
outside groups. In 1992, the OCC received 2,842 CRA
related applications; 11 of these applications were
protested by outside groups. The OCC denied 2 ap¬
plications and conditionally approved 20 applications
on issues related to the CRA. Conditionally approved
and denied CRA applications are summarized in each
issue of the Quarterly Journal.
The OCC’s Community Development Division also
maintains programs and designs initiatives to en¬
courage banks to help meet local credit needs. The
division’s activities in 1992 are summarized in the
Comptroller’s Report of Operations section of this issue.
41
Consumer Complaints
The Federal Trade Commission Act of 1975 (15 U.S.C.
41 , etseq.) requires the Office of the Comptroller of the
Currency (OCC) to receive and take appropriate action
upon complaints directed against national banks and
to annually report these activities to Congress.
During 1992, the OCC received 16,109 written con¬
sumer complaints against national banks. By February
1 0, 1 993, 1 4,995 or 93 percent of these complaints had
been resolved. The remaining complaints were in pro¬
cess. The average resolution time in 1 992 was 32 days.
The largest number of complaints in 1992 involved
loans. They accounted for 50 percent of the total com¬
plaints received and resolved this year. Credit cards
were involved in 47 percent of these loan complaints.
Deposits were the next largest category, at 26 percent
of the total resolved complaints. No other category of
complaints equaled or exceeded 5 percent of all com¬
plaints resolved.
Consumer Complaints, 1992*
Resolution Code
Deposits
Home
Equity
Loans
Credit
Cards
Other
Loans
Not a
National
Bank
All
Other
Total
Withdrawn, no
reply necessary
160
18
117
167
2
178
642
Bank error
435
21
319
347
110
1,232
Bank legally
correct
1,226
75
1,579
1,436
322
4,638
Communication
problem
276
20
167
331
80
874
Referrals to other
agencies
83
1
78
108
2,027
77
2,374
Information
provided
579
12
638
223
14
308
1,774
Settled by mutual
consent
432
30
440
544
131
1,577
Violation of law
38
3
69
54
1
165
Factual dispute
371
7
93
292
110
873
In/for litigation
354
1
55
287
149
846
Total
3,954
188
3,555
3,789
2,043
1,466
14,995
‘ Written complaints received in 1992 and resolved by Februaary 10, 1993.
43
Change in Bank Control Act
The Change in Bank Control Act of 1978 (CBCA) re¬
quires parties seeking control of a bank or bank holding
company to obtain approval from the appropriate
federal banking agency before the transaction occurs.
Under the act, the Office of the Comptroller of the
Currency (OCC) is responsible for reviewing changes
in the control of national banks including the:
• financial capacity, competence, experience,
and integrity of the acquiring party;
• effect on the financial condition of the bank to
be acquired; and,
• effect on competition in any relevant market.
Under the Financial Institutions Reform, Recovery, and
Enforcement Act of 1 989 (FIRREA), the OCC must also
consider the effect of the transaction on the Bank
Insurance Fund.
Public notice of each proposed change in control is
published in the newspaper of largest general circula¬
tion in the community where the national bank's home
office is located. In addition, the OCC assesses the
qualifications of each party seeking control and routine¬
ly investigates and verifies information contained in
each change in control notice.
The OCC acted on 29 proposed changes in control of
national banks in 1992. It consented to 21 proposals,
disapproved 4, and 4 were withdrawn prior to decision.
Consistent with the OCC’s previous experience, the
disapprovals related primarily to unsatisfactory finan¬
cial capacity, experience, integrity, or competence of
the acquiring party.
Change in Bank Control Act*
1987- 1992
Year
Acted On
Not
Disapproved
Disapproved
Withdrawn
1992
29
21
4
4
1991
15
6
6
3
1990
42
32
5
5
1989
55
48
3
4
1988
42
34
4
4
1987
60
41
8
11
* Notices processed, with disposition
45
Recent Corporate Decisions
On October 29, 1992, the OCC conditionally approved
a new charter application filed for Inland Valley National
Bank, Pomona, California. The conditional approval
required the bank's organizers to raise a minimum of
$4.5 million in capital rather than the $3.5 million the
organizers initially proposed. The OCC's decision to
require a higher level of capital was based on current
economic conditions in southern California and histori¬
cal capital levels for similar charter proposals.
On November 6, 1992, the OCC approved an applica¬
tion filed by Bank of Oklahoma, National Association,
Tulsa, Oklahoma, to establish, through a series of ap¬
plications, a state-chartered trust company in Texas.
Although the trust company will be an operating sub¬
sidiary of the bank, the OCC concluded that fiduciary
services do not constitute “core banking" and hence
are not subject to the McFadden Act’s branch banking
restrictions (12 U.S.C. 36). Similar requests for national
banks to operate trust companies as operating sub¬
sidiaries have been approved for FirsTier Bank, N.A.,
Omaha, Nebraska, and First Bank, N.A., Minneapolis,
Minnesota.*
On November 10, 1992, the OCC conditionally ap¬
proved an application filed by Manhattan Federal
Savings and Loan Association, Manhattan, Kansas, to
convert to a national bank (Manhattan National Bank).
The savings and loan association was in satisfactory
condition, with adequate capital and management, and
the applicant’s record of performance under the Com¬
munity Reinvestment Act (CRA) was satisfactory. All of
the directors for the proposed national bank must
receive satisfactory background clearances before the
conversion can be finalized.
On November 12, 1992, the OCC conditionally ap¬
proved a series of applications in which Champion
Federal Savings and Loan Association, Bloomington,
Illinois, will be merged into First of America Bank-Mc-
Lean County, National Association, Bloomington, Il¬
linois. Following the merger, most of Champion’s
branches will be transferred to eight national bank
This section summarizes selected corporate decisions completed
during the fourth quarter of 1992. The cases are noteworthy because
they represent issues of importance or unusual methods of ac¬
complishing a particular expansion activity. Copies of the public
sections of the applications may be obtained from the Communica¬
tions Division of the OCC in Washington. D C.
‘These cases were summarized in volume 1 1, number 3, page 1 7 of
the Quarterly Journal.
affiliates of First of America Bank-McLean County. A
section of the Illinois Banking Act authorizing mergers
with branch retention in emergency situations and the
Deposit Guaranty precedent formed the legal bases for
the decision. The conditional approval required First of
America Bank to provide the OCC with an acceptable
plan to dispose of and properly account for all noncon¬
forming assets and real estate. The OCC subsequently
will determine, on a case-by-case basis, the time limit
for each of the divestitures.
On November 20, 1 992, the OCC denied an application
filed by a national bank to open a branch. The bank had
failed to comply with a formal agreement it had entered
into with the OCC. The OCC also viewed the bank's
record of performance under the CRA as less than
satisfactory.
On November 23, 1 992, the OCC denied an application
filed by a bank to establish a customer-bank-com¬
munication terminal (CBCT). The OCC denied the ap¬
plication because the bank was in an unsatisfactory
condition and the bank's board of directors and
management had not corrected identified weaknesses.
The bank had a history of violations of laws and regula¬
tions; it was in noncompliance with a cease and desist
order at the time the application was filed. The bank
also had multiple civil money penalties (CMPs) out¬
standing against it, leading the OCC to question
whether the bank would comply with conditions that
might be imposed in connection with the application.
On December 9, 1 992, the OCC disapproved a Change
in Bank Control Act notice to acquire control of a
national bank. Two other banks previously under the
applicant’s control had deteriorated to an unsatisfac¬
tory condition. These banks had a record of aggressive
asset growth, unprofitable branch expansion, poor
credit underwriting, and weak management and board
supervision. Moreover, the OCC had concerns about
the competence, experience, and integrity of the
proposed management team. The OCC concluded that
it would not be in the best interests of depositors, the
public, or the Bank Insurance Fund to approve the
notice.
On December 9, 1992, the OCC denied a Change in
Bank Control Act notice filed by a group of individuals
to acquire a national bank. Two members of the acquir¬
ing group failed to disclose past criminal records until
queried by the OCC. Moreover, one of the members
failed to disclose a previous controlling interest in two
47
other banks. These factors led the OCC to question the
integrity of members of the acquiring group.
On December 14, 1992, the OCC approved a proposal
filed by FirsTier Bank, N.A., Omaha, Omaha, Nebraska,
to purchase most of the assets and liabilities of a state
bank. Although the OCC generally requires the ap¬
plicant to accept all of the target bank’s contingent
liabilities, the OCC concluded that Nebraska state law
imposed adequate safeguards to protect potential
creditors of the target bank. The OCC recently has
approved two similar proposals involving exceptions to
its contingent liability policy: on August 31, 1992, in¬
volving American National Bank of Sarpy County, Papil-
lion, Nebraska, and a December 16, 1992, decision
involving First National Bank in Ogallala, Ogallala,
Nebraska.’
On December 1 8, 1 992, the OCC approved an applica¬
tion filed by American National Bank, Omaha, Nebras¬
ka, to establish a mobile branch to operate in Omaha,
Nebraska. This action marks the first mobile branch
application approved for a national bank in Nebraska.
Decisions Related to the Community
Reinvestment Act
On October 9, 1992, the OCC conditionally approved
an application filed by First National Bank of Northwest
Florida, Panama City, Florida, to establish a mobile
branch to be used to provide courier services to the
bank’s customers. The OCC granted conditional ap¬
proval because the bank had demonstrated less than
satisfactory compliance with the CRA. Among other
deficiencies, an OCC examination found that the bank:
• made very little effort to ascertain the credit
needs of the bank’s delineated community;
‘For a summary of the American National Bank of Sarpy County case,
see volume 4. number 1 1, page 12 of the Quarterly Journal.
The section related to CRA is provided pursuant to Banking Circular
238. dated June 15. 1989 It includes summaries to provide easier
access to OCC's decisions on national bank corporate applications
that have been conditionally approved or denied on grounds related
to CRA The decision letters are published monthly in OCC's Inter¬
pretations series Decision letters for all CRA related decisions are
available upon request from the Communications Division
• had no system to identify the geographic
distribution of its credit applicants, including
applicants denied credit;
• had no program for periodic self-assessment
of its CRA activities or a means to otherwise
document the extent of the board’s involve¬
ment in CRA activities; and,
• had not developed a program to train affected
bank personnel or to enhance their
knowledge of and participation in community
development projects.
Prior to establishing the mobile branch, the bank must
correct these deficiencies and otherwise demonstrate
compliance with the requirements of the CRA.
On November 20, 1 992, the OCC denied an application
to merge First City National Bank, Memphis, Tennes¬
see, into First Commercial Bank, National Association,
Memphis, Tennessee. Although the OCC approved
First Commercial Bank’s application to change its main
office location on November 27, 1991, it had also
advised the bank that it would not entertain additional
corporate requests until the bank had fully met its
responsibilities under the CRA. When the OCC con¬
ducted a subsequent examination of First Commercial
Bank's CRA performance, however, the bank again
received a "needs to improve" rating.
On December 22, 1 992, the OCC approved an applica¬
tion filed by Bank of America Texas, N.A., Irving, Texas,
to acquire certain assets and liabilities from First Gibral¬
tar Bank, F.S.B., Irving, Texas. Although the application
was protested by several consumer groups, the ap¬
plicant recently had been rated satisfactory under the
CRA. However, the OCC advised the applicant that
OCC evaluations of future corporate applications filed
by the bank would place significant weight on the
degree to which the bank continues to expand lending
and the range of credit products offered in its CRA
community.
Ballard C. Gilmore
Corporate Activity Division
48
Special Supervision and Enforcement Activities
Problem National Banks
After reaching a high of 373 in 1990, the number of
problem national banks declined to 368 in 1991 and to
253 in 1992. The OCC's Southwestern District, in which
the majority of problem banks are located, saw a 47
percent decline in the number of problem banks in
1992. Several factors account for the improvement in
the condition of problem banks in this district, including
reduced loan loss provision expenses and declining
interest rates. Outside investors have also shown inter¬
est in investing in the national banks in this region.
Except for the Midwestern and Western districts, the
number of problem banks in the OCC's other districts
also declined in 1992.
Problem Banks By District
(as of December 31, 1992)
|^| 4 -rated
banks
HU 5-rated
banks
Problem National Bank
Historical Trend Line
1985 1986 1987 1988 1989 1990 1991 1992
4 and 5
rated banks
Source: Special Supervision
This section includes information on problem national banks, national
bank failures, and enforcement actions. OCC's Special Supervision
Division provides the data on problem banks and bank failures.
Information on enforcement actions is provided by Special Super¬
vision together with the Enforcement and Compliance Division of the
Law Department. The latter is principally responsible for presenting
and litigating administrative actions on the OCC's behalf against
banks requiring special supervision.
National Bank Failures
In 1992, 122 commercial banks failed of which 34, or
28 percent, were national banks. This represents the
lowest number of national bank failures since 1985.
Perhaps more importantly, it also represents the lowest
dollar volume of assets in failed national banks since
1 987. For the first time since 1 988, the greatest number
of national bank failures took place in banks with more
than $25 million in total assets. Fourteen banks failed
with assets between $100 million to $1 billion while nine
banks that failed had less than $25 million in assets.
Bank Failures
Source: Special Supervision
49
Total Assets in Millions Number of Bank Failures
Failed National Banks
By Asset Size
E3 $0-25
1988 1989 1990 1991 1992
Source Special Supervision
Dollar Volume of National Bank Failures
(in millions)
40,000
32,615
1987 1988 1989 1990
Source: Special Supervision
36,788
1991 1992
Enforcement Actions
The OCC has a number of remedies with which to carry
out its supervisory responsibilities. When it identifies
safety or soundness or compliance problems, these
remedies range from informal advice and moral
suasion to formal enforcement actions. These
mechanisms are designed to achieve expeditious cor¬
rective and remedial action to return the bank to a safe
and sound condition.
The OCC's informal enforcement actions include com¬
mitment letters and memoranda of understanding
(MOUs). Informal actions are meant to handle less
serious supervisory problems identified by the OCC in
its supervision of national banks. While they are not
legally enforceable, failure to honor informal actions will
provide strong evidence of the need for the OCC to take
formal action.
Commitment Letters
(Completed)
National bank failures in 1 992 occurred in every district
except the Midwestern. Most failures continue to occur
in the Southwestern District, which also has the most
problem national banks.
National Bank Failures by OCC District
(as of December 31 , 1992)
11.8%
■
NE (6)
□
SE (2)
m
CE (1 )
0
MW (0)
□
SW (21)
WE (4)
50
40
</>
c
o
30
®
-o 20
3
10
Memorandums of Understanding
1988
(Completed)
22
22
, .
...
• . ,
^rr,r,r:
1
p*
-
-
10
1
1
• -
ft. . Y
\ -
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' -
v
-
31
*22=1
I
1989
1990
1991
41
M
1992
50
Number of Actions Number of Actions
The most common types of formal actions issued by
the OCC over the past several years have been formal
agreements, cease and desist orders, civil money
penalties (CMPs), and removals. Formal agreements
are documents signed by a national bank's board of
directors and the OCC in which specific corrective and
remedial measures are enumerated as necessary to
return the bank to a safe and sound condition. Cease
and desist orders, sometimes known as consent or¬
ders, may be legally enforced. Like a formal agreement,
these orders contain a series of remedial measures in
article form. CMPs are authorized for violations of laws,
rules, regulations, formal written agreements, final or¬
ders, conditions imposed in writing, and, under certain
circumstances, unsafe or unsound banking practices
or breaches of fiduciary duty. Finally, the OCC oc¬
casionally is compelled to use removal orders to
remove individuals from the banking industry who have
violated the law or acted in an unsafe or unsound
manner.
Formal Agreements
Civil Money Penalties
Orders of Removal
Recent Enforcement Cases
Orders to Cease and Desist
120
100
80
60
40
20
0
1988 1989 1990 1991 1992
(Completed Includes temporary orders)
An OCC investigation into a series of bank takeovers in
Texas has culminated in the criminal convictions of six
individuals from Utah and California who attempted to
gain control over certain banks in order to defraud
them. The individuals were: James Comet Barrus, Jr.,
Samuel Chad Godfrey, and Fred Leroy Harwood from
Salt Lake City, Utah; Elliot Bernstein, from Los Angeles,
California; Gloria Manchester, from Orange, California;
and James A. Trodden, from Laguna Niguel, California.
Mr. Barrus, who the United States Attorney’s Office
deemed to be the mastermind of the scheme, faces a
sentence of up to 50 years. Each of the other defen¬
dants face sentences of up to 5 years.
‘Thirty-three of the cease and desist orders and civil money penalties
settled In the period January 1 - December 3 1, 1992 involved orders
issued pursuant to 12 CFR 12 relating to violations of the recordkeep¬
ing requirements of government securities dealers
51
In its initial investigation, the OCC uncovered evidence
that the group attempted to take as much as $130
million from the banks. The scheme was to sell worth¬
less debentures issued by shell corporations to banks
recently purchased by the group. The OCC turned
these findings over to the FBI and the United States
Attorney's Office in Houston, Texas. To assist in the
prosecution of these individuals, an OCC attorney sub¬
sequently was designated a Special Assistant United
States Attorney. In April, a federal grand jury returned
an indictment against the individuals, alleging con¬
spiracy to misapply bank funds and commit bank fraud;
money laundering; misapplication of bank funds; bank
fraud; and interstate transportation of money taken by
fraud. All defendants pled guilty prior to the opening of
the trial.
The OCC reached a settlement with six respondents
who are current and former directors of International
Bank, N.A., Brownsville, Texas. The individuals con¬
sented to payment of CMPs ranging from $3,000 to
$15,000 for allegedly extending preferential loans.
Three former directors also agreed to reimburse the
bank $70,000. Former chairman of the board Emery
Green, Jr. also stipulated and consented to a per¬
manent prohibition from banking.
A former vice-president and senior lending officer of
Leadership Bank, N.A., Oklahoma City, Oklahoma,
stipulated and consented to a permanent prohibition
from banking. Before the OCC issued the formal notice,
Mr. Greg Tower agreed to the prohibition, which related
to allegations of unsafe and unsound banking practices
in the bank’s equity reports on cattle feedlot lending.
Jim Hines, a former assistant vice-president of Star
Bank, N.A., Cincinnati, Ohio, stipulated and consented
to a permanent prohibition from banking. The OCC
alleged that the bank had suffered significant losses as
a result of the filing of false invoices in a corporate
lending scheme.
John Wynn, former chief executive officer, vice-presi¬
dent, and director of Powell Valley National Bank,
Jonesville, Virginia, stipulated and consented to a per¬
manent prohibition, a $10,000 CMP, and a $150,000
reimbursement to the bank. The settlement ended OCC
pursuit of a case based on allegations of unauthorized
and unsafe and unsound trading practices.
The OCC reached CMP settlements aggregating
$24,000 with several directors of the failed Southwest
National Bank, Dallas, Texas. The OCC alleged that
directors Glenn Cunningham, Brian Harrington, Albert
Korenek, Richard O’Donnell, Eugene Pitman, and
B/ron York violated the bank's legal lending limit. The
allegations cited the directors' failure to stop illegal
lending activities of the bank's former president and
chief executive officer despite repeated warnings from
the OCC.
The OCC reached CMP settlements aggregating
$68,000 with several directors of the First National Bank
at Dillonvale, Dillonvale, Ohio. The OCC alleged that
directors James Croft, Gerald Jelinek, David McKim,
Laurence Boothe, Paul Thompson, Ada Ellanovitz, and
J.D. Miller violated 12 CFR 3.6 and 5.51(d) as well as
certain provisions of a formal agreement entered into
by the bank and the OCC.
The OCC assessed CMPs against the former directors
of Cherry Creek National Bank, Denver, Colorado, for
allegedly filing inaccurate call reports. The OCC and
the directors entered into consent orders in which the
directors consented to pay CMPs in the aggregate
amount of $25,000.
The OCC filed notices against Ernest W. Kuehne, Jr.,
the former chairman of the board of Farmers and Mer¬
chants National Bank, Mart, Texas. The notices alleged
that Mr. Kuehne had violated 12 U.S.C. 84, 375a, and
375a(6), and 12 CFR 32.5(a)(2), 31.2(a), and 215.8.
Without admitting or denying the OCC's allegations, Mr.
Kuehne consented, on November 20, 1992, to a per¬
sonal cease and desist order and paid a CMP of
$20,000.
On November 12, 1992, the OCC suspended Donald
E. Hedrick, former chairman of the board of Rushville
National Bank, Rushville, Indiana, from the bank. The
OCC alleged that Mr. Hedrick had engaged in insider
abuse and unsafe and unsound banking practices.
On April 10, 1992, the OCC issued temporary cease
and desist orders against the First National Bank of
Bellaire, Bellaire, Texas, and its affiliates, Texas National
Bank, Baytown, Texas, and Mayde Creek Bank, N.A.,
Katy, Texas. The temporary cease and desist orders
required the banks to improve the quality of their
records and to stop extending credit to specified bor¬
rowers. The banks subsequently sought a preliminary
injunction seeking to bar implementation of the orders.
On September 1 , 1 992, the United States District Court
for the Southern District of Texas generally upheld the
temporary cease and desist orders. However, the court
granted a preliminary injunction prohibiting enforce¬
ment of one provision of the orders, holding that the
OCC had not shown that an alleged unsafe and un¬
sound practice constituted an imminent threat to the
banks.
On November 20, 1992, the OCC suspended Charles
G. Floyd, Jr., former chairman of the board and chief
executive officer of United Bank, N.A., Lancaster,
52
Texas. The OCC suspended Mr. Floyd for alleged
unsafe and unsound practices and breaches of
fiduciary duty. The allegations concerned kickbacks
received from the bank in the amount of approximately
$1 10,000, as well as allegedly causing the bank to pay
Mr. Floyd’s legal fees in excess of $200,000. Mr. Floyd
also violated the bank's legal lending limit.
The OCC and the United States Attorney's Office in Los
Angeles, California, entered into a global settlement in
November 1 992 with William A. Malis, former chairman
of the board of United Merchantile Bank and Trust
Company, N.A., Pasadena, California. Mr. Malis was
under investigation for alleged insider activities. Mr.
Malis consented to a permanent prohibition from bank¬
ing and agreed to pay approximately $1.4 million in
penalties.
The OCC, in a joint action with the Office of Thrift
Supervision (OTS) and the Federal Reserve Board,
reached a settlement with Leopold H. Greif, former
chairman of five insured financial institutions, including
Midland Bank of Overland Park, N.A., Overland Park,
Kansas. Mr. Greif consented to a prohibition from bank¬
ing and agreed to pay $2.7 million for loan losses
recognized by the financial institutions. The bank
regulatory agencies charged that Mr. Greif engaged in
unsafe or unsound banking practices and knowing or
reckless violations of OTS regulations concerning loans
to affiliated persons and conflicts of interest.
53
Speeches and Congressional Testimony
Page
Of the Comptroller of the Currency:
Statement of Stephen R. Steinbrink, Acting Comptroller of the Currency, before the Senate Committee
on Banking, Housing, and Urban Affairs, on the effect of bank failures on the deposit insurance system,
Washington, D.C., October 26, 1992 . 57
Remarks by Stephen R Steinbrink, Acting Comptroller of the Currency, before the Annual Banking
Conference of the American Institute of Certified Public Accountants, on the impact of the Federal
Deposit Insurance Corporation Act of 1991, Washington, D.C., November 13, 1992 . 61
55
Statement of Stephen R. Steinbrink, Acting Comptroller of the Currency,
before the Senate Committee on Banking, Housing, and Urban Affairs, on the
effect of bank failures on the deposit insurance system, Washinqton D C
October 26, 1992
Mr. Chairman and members of the committee, I am here
to discuss the condition of the bank deposit insurance
system. In your invitation letter, you posed several
questions concerning the effect of bank failures on the
deposit insurance fund. As Acting Comptroller of the
Currency, I can best respond by focusing on the con¬
dition of the national banks, and how they will be
affected by the implementation of the “prompt correc¬
tive action" provisions of the Federal Deposit Insurance
Corporation Improvements Act of 1991 (FDICIA) that
take effect on December 19.
Condition of National Banks
In general, the condition of the national banking system
has improved during the past two years. We remain
concerned, however, about the persistent nature of
nonperforming real estate loans and the continuing
erosion of the banking industry’s share of traditional
core banking markets.
Annual earnings of national banks increased in 1991
after two years of declines, and are continuing to trend
up in 1992. The improved performance has allowed
banks to add to their capital by increasing retained
earnings. The earnings increases also made possible
this year’s record sales of new bank equity. As a result
of these additions to bank capital, as well as a small
shrinking of the asset base, the average equity capital
ratio for all national banks increased in five of the last
six quarters, and is now at the highest level it has been
in the past decade. These trends are particularly
notable given the large amount of problem loan charge
offs taken by national banks.
We should view these encouraging trends cautiously,
however. Despite the recent improvement in bank per¬
formance, there are still significant weaknesses on the
balance sheets of many national banks, particularly in
the area of nonperforming real estate loans. Although
the percentage of real estate loans that are non-current
has declined in three of the past four quarters, the rate
of decline has been slow, and nonperforming real es¬
tate loans at many banks remain far above historical
levels. Moreover, we continue to see large amounts of
real estate loans fall into nonperforming status, offset¬
ting some of the progress that banks have recently
made by charging off nonperforming loans. Because
problems in some real estate markets are likely to
persist for many years, we expect problems associated
with real estate loans to be a drag on bank earnings for
some time to come.
Another cause for concern is that the strong earnings
we have seen recently may be due in part to a decline
in the role of banks in our financial markets rather than
a rebound in the banking industry. It is widely recog¬
nized that banks' share of credit to the business sector
has been declining for a number of years. Since 1990,
the volume of commercial and industrial loans, tradi¬
tionally a core product of commercial banks, has ac¬
tually fallen. This shrinkage in assets has permitted
banks to reduce their reliance on more costly funding
sources, such as purchased deposits, while retaining
less expensive core deposit financing. Although this
has reduced the average cost of funds and contributed
to higher bank profitability in the short term, the under¬
lying shrinkage of commercial and industrial lending
has raised questions about the future role of commer¬
cial banks in providing credit. Since commercial banks
are the major source of funding for small and medium¬
sized businesses, this should be a cause for concern.
Similarly, we cannot afford to ignore the potential long¬
term effect on credit availability stemming from the
banking industry's response to FDICIA. I am particular¬
ly concerned that we do not create an atmosphere in
which bankers are afraid to make good loans or take
prudent risks. Clearly, FDICIA creates incentives for
banks to reduce the risks they assume, and it places
particular emphasis on banks increasing their capital
ratios. At present, efforts to improve capital ratios do
not appear to have had a large impact on lending.
There is some evidence, however, of portfolio shifts. For
example, banks have shifted their real estate loan
portfolios away from risky construction loans toward
historically safer home mortgages. If the pressure for
banks to maintain or improve their capital reserves
continues, it is also possible that the lending growth
necessary to fuel an economic recovery could be im¬
paired.
Distribution of National Banks by Capital Zones
Mr. Chairman, you requested that I report on the dis¬
tribution of national banks among the five capital zones
specified in the regulations that implement the prompt
corrective action provisions of FDICIA. The table below
displays the number and assets of national banks in
each capital zone, based on the capital ratios of these
57
banks as of June 30, 1992, the most recent date for
which complete data are available.
Capital Zone
Number and
Percent
of Banks
Total and
Percent
of Bank Assets
Well Capitalized
3,379
91.5%
$1,101,405 55.9%
Adequately
Capitalized
213
5.8
836,789 42.2
Undercapitalized
58
1.6
27,285 1.4
Significantly
Undercapitalized
17
0.5
1,747 0.1
Critically
Undercapitalized
26
0.7
4,362 0.2
These figures are based only on capital ratios. The
assignment of banks to different zones will be based
primarily on their capital ratios, but may in some instan¬
ces be adjusted on the basis of the bank’s CAMEL
rating or the existence of supervisory orders concern¬
ing the bank. A bank also may be downgraded due to
unsafe or unsound banking practices. We are currently
in the process of informing every national bank of its
capital zone as of June 30, and of the regulatory actions
that its capital status may trigger when the prompt
corrective action provisions of FDICIA are implemented
on December 19.
As shown in the table, over 97 percent of all national
banks had capital levels that met the adequately or well
capitalized thresholds, based on second quarter data.
This finding is not surprising; we require national banks
to meet the risk-based capital standards and minimum
leverage ratio requirements. Additionally, a bank that
qualifies for the adequately capitalized or well capital¬
ized zones is not necessarily exempt from supervisory
concern. Our examiners have identified weaknesses in
some of these banks, and our supervisory ratings of
those banks reflect those weaknesses.
Turning to the national banks that are less than ade¬
quately capitalized, 58 were undercapitalized, 17 were
significantly undercapitalized, and 26 were critically
undercapitalized, based on second quarter data.
Again, these data contain no surprises. Bank ex¬
aminers monitor the status of banks that do not meet
minimum capital standards, and all of these banks have
developed, or are in the process of preparing, capital
plans.
Banks that are less than adequately capitalized by
December 19 of this year will be subject to prompt
corrective action as mandated by FDICIA. Undercapi¬
talized and significantly undercapitalized banks will be
restricted from making dividend payments, opening
new branches, consummating mergers, or entering
new lines of business, and may be subject to curbs on
asset growth, interest rates that they pay on deposits,
and other activities. Critically undercapitalized banks
— those with tangible capital that totals less than 2
percent of total assets — will be placed in receivership
or conservatorship unless their capital is promptly res¬
tored to adequate levels.
The orderly closure of a bank requires time, planning,
and coordination of efforts with the FDIC. We have
notified the banks that are currently critically undercapi¬
talized what they can expect when the prompt correc¬
tive action provisions of the law take effect on
December 19. Before we actually close those banks,
we will hold "capital call” meetings with their boards of
directors and obtain “access resolutions" from the
boards, which will allow the FDIC to bring prospective
bidders into the banks. The FDIC will hold bid informa¬
tion meetings, and prospective bidders will perform
due diligence. These steps will enable us to begin
placing critically undercapitalized banks into receiver¬
ship beginning very shortly after the first of the year.
The Statutory Change in Closure Rules
As was well known when FDICIA was enacted, the
timing of bank failures will be accelerated when the
prompt corrective action provisions of the law are im¬
plemented. Most of the banks that will be closed under
prompt corrective action would have failed even in the
absence of legislation; FDICIA simply changes the
timing of their closure. Under current law, the OCC
cannot close a bank unless its capital is exhausted, or
unless the bank experiences a liquidity insolvency and
cannot meet its obligations as they come due. After
December 19, we will be required to close banks when
their tangible capital falls below 2 percent of assets
unless they can demonstrate their ability to recapitalize
within 90 days.
Forthcoming Closures of National Banks
Mr. Chairman, in your letter of invitation, you requested
information on the number of national banks that we
expect to fail during the remainder of 1992 and during
each quarter of 1993. 1 cannot provide you with precise
estimates, for several reasons. First, banks can and do
undertake efforts to solve their problems on their own,
for example, by recapitalizing or seeking a merger
partner. Second, small and unpredictable changes in
earnings can make the difference between survival and
failure for banks that are teetering at the brink. Third,
whenever a bank fails, the FDIC can at its discretion
invoke the cross-guarantee provisions of FIRREA,
which can trigger the failure of banks holding more than
2 percent tangible equity if they are owned by the same
holding company And fourth, some banks that are not
58
critically undercapitalized may fail as the result of
liquidity insolvencies. FDICIA may make such liquidity
failures more likely because it cuts off or restricts ac¬
cess of weakened banks to sources of funding such as
brokered deposits, interbank loans, and the Federal
Reserve's discount window lending.
In addition, as the Acting Comptroller of the Currency,
I must be concerned with how any projections about
bank failures that I make will be interpreted by the
markets. As the committee knows, we work closely with
the FDIC to seek the orderly resolution of failed banks.
None of us wants to say anything today that will lead to
liquidity problems at banks with known weaknesses.
I will therefore attempt to respond to your request using
the publicly available information on capital levels as a
starting point. Of the 26 national banks that had tan¬
gible equity below 2 percent as of June 30, 1992, 13
have either failed, merged, or been recapitalized. We
expect to close three more of those banks before the
end of this year.
We expect to close another 15 banks during the first
quarter of 1993. These projected closures include most
of the remainder of the 26 banks mentioned above, and
several banks that we expect to become critically un¬
dercapitalized by the end of this year. It is possible that
additional banks that we are not now expecting to close
will become critically undercapitalized in coming
months. It is also possible that one or more banks that
are currently critically undercapitalized may improve
their capital positions by enough to make closure un¬
warranted.
Projecting failures beyond the first quarter of 1993 is
difficult, for the reasons listed above. Based on avail¬
able information, we estimate that between 18 and 22
national banks will fail during the final three quarters of
1993.
Impact of Projected Failures on the Bank
Insurance Fund
In its projections of the condition of the bank insurance
fund, the FDIC assumes that a bank failure costs the
fund an amount equal to 17 percent of the failed bank
assets. If that loss rate were applied to the bank failures
that we expect to occur through the first quarter of 1 993,
it would imply a cost of $688 million to the deposit
insurance fund. That figure would change if the FDIC
chose to invoke the cross-guarantee clause of FIRREA.
The failures of some undercapitalized banks that we do
not currently expect to fail could generate additional
losses. The FDIC has set aside reserves to cover the
cost of resolving the national banks that we expect to
close during the next year.
There are several reasons, however, to believe that
future bank failures will generate fewer losses per dollar
of failed bank assets than the bank insurance fund has
historically had to absorb. First, closing banks while
they still have some tangible capital will provide an
additional cushion against loss to the fund. Second,
supervisors have been conducting more targeted ex¬
aminations of problem assets and banks have been
making more timely charge offs of bad loans than in the
past, so we would expect there to be fewer unrecog¬
nized losses on bank balance sheets.
Conclusion
I have provided some statistics on the condition of the
national banking system, the number of national banks
that are presently undercapitalized, and the number of
national banks that the OCC expects will fail over the
course of the next year under the new 2 percent closure
rule. I think we can draw three broad conclusions from
these statistics.
First, assertions that there are large, unreported prob¬
lems in the banking system are unfounded. There are
persistent problems with nonperforming real estate
loans, but while these problems may threaten a number
of individual banks, they do not threaten the overall
health of the national banking system. The bulk of the
industry (over 97 percent of national banks, holding
more than 98 percent of the assets of the system), meet
or exceed the standards for minimum capital ade¬
quacy. Banks are earning record profits, and the in¬
dustry is adding to its capital reserves. There is simply
no basis for claims that a large portion of the industry
is on the brink of insolvency.
Second, allegations that bank supervisors have swept
problems under the rug are unfounded. Indeed, most
of the criticism that I hear argues the opposite: that the
OCC has been too tough on banks. We do expect an
acceleration in the number of bank closures during the
first half of 1993, but that is the result of a statutory
change in the closure rule that supervisors are required
to follow. The accelerated closures consist largely of
banks with capital ratios between zero and 2 percent.
Under current law, the OCC must wait until their capital
is exhausted before closing them. After December 19,
when the prompt corrective action provisions of FDICIA
take effect, we will be required to close them almost
immediately.
Third, while the current condition of the national bank¬
ing system is sound, the continuing decline in the role
of commercial banks in financial markets is cause for
concern. Certain provisions of FDICIA that discourage
banks from taking risks make it more difficult for them
to compete for business with other providers of financial
59
services. Banks are also handicapped by the failure of
the Congress to remove statutory restrictions on the
types of products they can offer and the geographic
markets in which they can operate. Removing these
handicaps will help ensure the long-term soundness of
the banking industry, and of the bank insurance fund.
60
Remarks by Stephen R. Steinbrink, Acting Comptroller of the Currency, before
the Annual Banking Conference of the American Institute of Certified Public
Accountants, on the impact of the Federal Deposit Insurance Corporation Act
of 1991, Washington, D.C., November 13, 1992
I am delighted to have this opportunity to talk with you
this afternoon and welcome you to the community of
bank supervisors.
You may not realize that you have become a part of
bank supervision — but you have. From your stand¬
point, that may be the major impact of the Federal
Deposit Insurance Corporation Improvement Act of
1991 (FDIC Improvement Act). For the first time, your
role in bank supervision is written into law.
That is why your annual banking conference takes on
added meaning this year. Judging from the speakers
you have invited to this meeting, your association clear¬
ly recognizes the new significance of your activities to
bank supervision.
In your advance program, my speech is described as
a "Call for Banking Reform." With your permission, I
would like to focus the emphasis of my remarks. Rather
than talking about banking reform in general, I want to
focus your attention on a single, specific question: What
role will commercial banks play in the financial services
market in the year 2000?
This is not just an idle question. Over the past 1 5 years,
the role of banks in the U.S. economy has changed
significantly. If present trends continue, that role is likely
to change even more during the rest of this decade.
The real question is whether this change will serve the
needs of our economy.
Since the 1930s, commercial banks have played a
critical part in economic growth. They have channeled
the nation’s savings to creditworthy borrowers who put
those savings to work.
For much of that period, bank activities were restricted
— and protected — by government regulation. But over
the past 15 years, government protections for banks
have all but vanished.
As a result, commercial banks have watched their
traditional markets disappear. Blue-chip companies
began to borrow directly from the securities markets.
GE Credit and AT&T became major providers of con¬
sumer credit. And mutual funds attracted a growing
share of consumer deposits.
Commercial banks as a group played a steadily declin¬
ing role in meeting the nation’s credit needs. In an effort
to maintain growth, some took on increasing risk — third
world debt, oil and gas loans, and mushrooming real
estate portfolios.
The results are well known. From 1981 through 1990,
the aggregate return on bank assets fell by one third.
Aggregate return on equity dropped by 40 percent.
From 1981 through the end of last year, 530 national
banks failed. That's more national banks than had failed
in the previous four decades.
This trend has been reversed in the past four quarters.
Commercial bank earnings are increasing. So is bank
capital. In fact, the average equity capital ratio for all
national banks is at its highest level in the past decade.
That is particularly impressive, given the large volume
of problem loans that national banks have charged off
in the past several years.
Before we all start celebrating, however, let me make
two points about what may lie ahead. First, I’m con¬
cerned that past due loans continue to be unacceptab¬
ly high, although there has been some improvement.
I’m also concerned that the volume of repossessed real
estate held by banks — Other Real Estate Owned — is
still increasing. Given the continuing weakness in some
real estate markets, these problem loans and OREO will
continue to be a drag on bank earnings.
Second, while I am delighted to see an increase in bank
earnings, I am concerned about the source of these
earnings. These earnings may be due in part to the
decline in bank participation in our financial markets —
not to a rebound in the banking industry.
As I mentioned earlier, banks’ share of credit to the
business sector has been dropping for a number of
years. But since 1990, the total volume of commercial
and industrial loans has actually fallen. This shrinkage
in loans has allowed banks to rely less on expensive
purchased deposits and more on lower-cost core
deposits.
As interest rates have dropped, banks have taken
advantage of widening interest spreads. But if interest
61
rates start to climb, banks may find it difficult to maintain
their current levels of profitability.
Even more important, the shrinking volume of commer¬
cial and industrial loans raises questions about the
future role of commercial banks in providing credit.
There is another factor that also raises questions about
the role of commercial banks in the future. That factor
is the primary subject of your conference — the FDIC
Improvement Act.
No one — not regulators or bankers or accountants —
can fully predict the impact of the regulations we are
issuing to implement this law.
The FDIC Improvement Act was enacted by Congress
for one primary purpose: to protect the federal deposit
insurance fund. And to that end, it mandated specific
restrictions on bank activities. It required all the
regulators to write a host of new regulations — including
the regulation for Section 112, which draws account¬
ants into the community of bank supervisors.
Congress viewed bank capital as the primary source of
protection for the insurance fund. So, Congress re¬
quired the regulators to take increasingly stringent ac¬
tions as bank capital declines.
A well capitalized bank must have at least 5 percent
equity capital. When capital drops below 2 percent, we
are required to close the bank. And for banks with
capital between 5 and 2 percent, regulators must apply
a number of increasingly stringent restrictions.
No bank wants to be subject to these restrictions. So it
should be no surprise that banks have taken steps to
improve their capital ratios.
As a bank regulator, I am delighted that banks are
shoring up their capital positions. I am concerned,
however, that the restrictions in FDICIA not create an
atmosphere in which bankers are afraid to make good
loans or take prudent risks. That kind of atmosphere
discourages lending that is essential to fuel an
economic recovery.
Perhaps equally important, it could further erode banks’
traditional role as providers of credit for small- and
medium-size businesses.
That brings me back to my first question: what kind of
a role will banks play in our economy in the year 2000?
For the foreseeable future, banks will be operating
under greater regulatory restrictions than at any time in
recent memory. They will be subject to continuing
public concern about their strength in light of the con¬
tinuing weaknesses in real estate markets.
Banks will be expected to maintain high levels of capital
to prevent future losses to the deposit insurance fund.
And, at the same time, they will be asked to provide
more loans to fuel economic recovery — particularly for
small business. The real question is whether banks will
be able to meet all these demands.
I don't have the answer to that question. The truth is that
the actions of others will play a major role in deciding
the outcome for banks.
To begin with, next year, you will be looking at a new
cast of characters in three out of the four financial
institution regulatory agencies. A new Comptroller of
the Currency will be nominated and, I hope, confirmed.
Last Friday the director of the Office of Thrift Super¬
vision, T. Timothy Ryan Jr., resigned. That means a new
director of the Office of Thrift Supervision (OTS).
Moreover, there could be an entirely new board of
directors at the FDIC. That's because the Financial
Institutions Reform, Recovery and Enforcement Act of
1989 — commonly known as FIRREA — changed the
terms of the appointed members of the FDIC board.
The terms of the Acting Chairman, Andrew Hove, and
FDIC Director C.C. Hope will both expire in February.
President-elect Clinton could appoint three new FDIC
directors, as well as a new Comptroller of the Currency
and a new director of OTS.
Both the OTS and the OCC will report to a new
Secretary of the Treasury in the Clinton Administration.
All these people will make the final decisions on how to
administer the new FDICIA regulations. And they will do
so under the oversight of a Congress with more than
100 new members.
The new Congress and the new Administration will face
two overriding goals: ensuring the availability of bank
credit for creditworthy borrowers, particularly small and
medium-size businesses, while at the same time ensur¬
ing that bank failures do not cost taxpayers any money.
In working to meet these goals, the actions of the new
Congress, the new Administration, and the new heads
of the regulatory agencies will determine the answer to
the question I posed at the beginning of my remarks.
They will shape the role that banks will play in the
financial services market at the end of this decade.
The debate on this question has already begun. Some
are arguing that our nation has too much banking
capacity, and that it needs to shrink even further. They
contend that we need a more diverse system for trans¬
forming private savings into investment capital.
Others are concerned about the availability of credit to
different economic sectors — particularly small- and
medium-size business — if the commercial banking
industry shrinks even further.
This is a critical debate — one in which we all have a
stake. As a bank supervisor, I encourage you to take
part in it.
63
Interpretations — October 1 to December 31, 1992
Interpretive Letters
Pages
. 67-80
Letter No.
Laws
12U.S.C. 92a . 607
12U.S.C. 3102 . 604
Regulations
12CFR 9 . 608
12CFR 16.5 . 605, 606
Subject
Whether a federal branch or agency of a foreign bank may acquire DPC property,
including stock, under the same rules that apply to a national bank . 604
Violations of 12 CFR 16.5 concerning a national bank’s nonpublic offering
of stock . 605, 606
Payment of finder’s fees for referring trust business to a national bank's
trust division . 607
Request to establish a collective investment fund for qualified trusts . 608
Use of the title "president” to refer to senior managers of separate business units
of a bank . 609
Whether national banks in Illinois providing accommodation services equivalent
to those offered by state-chartered banks constitutes branch banking . 610
Trust Interpretations . 80-83
Regulations
12 CFR 9.18(b)(1) . 271
12 CFR 9. 1 8(b)(9)(ii) . 272
Subject
A trust department’s methods for determining the fair value of guaranteed
investment contracts, bank investment contracts, and other investments . 271
Investments in mortgage obligations collateralized by government agencies . 272
Whether a fiduciary may purchase securities through an affiliated brokerage
company . 273
65
Interpretive Letters*
604 — October 8, 1992
This is in response to your letter of October 5, seeking
confirmation of your view that when a federal branch or
agency of a foreign bank in the United States acquires
assets in the course of collecting or securing a debt
previously contracted (DPC) it does so under the hold¬
ing period and other rules that govern DPC assets
acquired by a national bank. I agree with your con¬
clusion.
Under section 4 of the International Banking Act of
1978, 12 U.S.C. 3102(b) (IBA), a federal branch or
agency of a foreign bank conducts its operations "with
the same rights and privileges as a national bank at the
same location and shall be subject to all the same
duties, restrictions, penalties, liabilities, conditions, and
limitations that would apply under the National Bank Act
to a national bank doing business at the location...,’’
with four specified exceptions. None of these four ex¬
ceptions involves acquisition of DPC assets.
OCC Interpretive Letter No. 476, March 20, 1989,
reprinted in [1989-1990 Transfer Binder] Fed. Banking
L.Rep (CCH) para. 83,013, concluded that a federal
branch could not take advantage of the OCC's operat¬
ing subsidiary rule, 12 CFR 5.34, in conducting its
activities because, as a structural matter, the foreign
parent bank should be considered the owner in the
described circumstances. Obviously a federal branch
or agency is a hybrid, since it in some sense is an
extension of its foreign parent but in most respects
under the IBA is treated as a separate entity and
analogized to a national bank at the same location.
Interpretive Letter No. 476 should be limited to the
question posed on the facts therein, i.e., the issue of
whether a federal branch or agency may choose to
parcel out a segment of its business to be conducted
in a separately incorporated subsidiary company. The
letter answered in the negative for the reasons stated.
However, a federal branch or agency may originate or
purchase loans, purchase investment securities, and in
general acquire and hold assets and liabilities subject
to the same rules that would apply to a national bank at
the same location. This is what the IBA provides.
The fact that a particular asset being acquired by a
federal branch or agency is real estate, stock, or some-
hnterpretive letters and no objection letters reflect the views of the
Comptroller's legal staff. Trust interpretations reflect the views of the
Compliance Management Department
thing else of value acquired DPC does not require a
different rule or result. Indeed, the policy statement
following 12 CFR 28 specifically mentions holding real
estate (12 U.S.C. 29) as an example of a law which
applies to a federal branch or agency in the same way
that it applies to a national bank, see 12 CFR 28.101
para. 3. If the federal office acquires real estate DPC, it
is subject to the maximum holding period and other
limitations prescribed in 12 U.S.C. 29 and implement¬
ing regulations such as 12 CFR 7.3020 and 7.3025. If
it acquires stock DPC, the OCC has for several
decades used the holding period in 1 2 U.S.C. 29 as the
relevant maximum holding period for the DPC stock.
William B.GIidden
Assistant Director
Bank Operations and Assets Division
★ ★ *
605— July 1, 1992
This acknowledges receipt of the bank's correspon¬
dence dated May 1 3, 1 992, and May 21,1 992, regard¬
ing the banks nonpublic offering of its perpetual
preferred stock1. By letter dated May 4, 1992, the
Securities and Corporate Practices Division of the Of¬
fice of the Comptroller of the Currency (OCC) notified
the bank concerning alleged violations of 12 CFR Part
1 6 (Part 1 6) and requested that the bank cease to make
any further offers or sales until further notice from this
division.
As discussed in our earlier letter, we were advised that
the bank was conducting the nonpublic offering in
apparent violation of the requirements of 12 CFR 16.5,
including publicly advertising the preferred stock;
making blanket offers to certain depositors; offering the
stock to unsophisticated investors unable to evaluate
the risk of the prospective investment and the condition
of the bank;and distributing offering materials contain¬
ing material misstatements or omissions and lacking
adequate disclosure.
’On June 11, 1991, the bank notified this division of its intention to
offer and sell perpetual preferred stock pursuant to the OCC’s
nonpublic offering exemption at 12 CFR 16.5 (notice) This division
replied by letter dated June 18, 1991, that subject to the specific facts
involved and assuming that all the requirements of Part 16 5 were
met it would not object to the bank's reliance on this exemption from
the requirements of Part 16
67
Based on our review of this matter, including the ex¬
planatory materials provided by the bank,2 we under¬
stand the facts and circumstances as follows. The bank
posted a notice in the lobby on a bulletin board which
mentioned the sale of the bank stock along with other
bank products. The notice was removed once the bank
was advised it was improper. A former officer of the
bank sent letters to approximately 15 select individuals
that he knew and believed to be sophisticated investors
that might have an interest in purchasing bank stock.
Signed affidavits by the subsequent purchasers and
bank officers indicate that none of the investors pur¬
chased the stock based on those letters. The bank has
represented that there was no blanket offer to all
depositors with accounts over a certain dollar amount.
Further, the bank maintains that it had a reasonable
basis to believe that the potential purchasers under¬
stood the risks of their investment in accordance with
12 CFR 16.5(a), based on discussions between bank
management and the potential investors and by the
investors completing the "Potential Shareholder Ques¬
tionnaire." The bank also provided potential purchasers
with a copy of a "Private Placement Memorandum.”
While the memorandum contained copies of some of
the bank’s financial statements, the memorandum was
not updated to contain the most recent year-end and
interim financial statements for the period when most of
the purchases were made. Nor were interim financial
statements for the previous year included. This lack of
required financial information specifically violates 12
CFR 16.5(c).
The offering of securities by a national bank is governed
by the regulations set forth in 1 2 CFR 1 6. This regulatory
provision generally is intended to provide prospective
bank investors with current information relating to the
financial condition and business operations of a bank
seeking to obtain funds through the sale of its
securities. Pursuant to 12 CFR 16.3(a), no bank shall,
directly or indirectly, offer, offer to sell, offer for sale, or
sell any security of which it is the issuer unless the offer,
offer to sell, offer for sale, or sale is made through the
use of an offering circular which has been filed with,
and declared effective by, the OCC. An exemption rrom
this rule is provided by 12 CFR 16.4(a) and 16.5 for
transactions by a bank not involving a public offering.
A transaction will be deemed not to involve a public
offering if all conditions of 12 CFR 16.5 are met.
2These materials include a list of stock purchasers; copies of the
Potential Stockholder Questionnaires prepared by the purchasers,
copies of the subscription agreements, affidavits executed by pur¬
chasers and by bank management, and a copy of the Private
Placement Memorandum provided to purchasers.
The exemption provided by section 16.5 generally
covers purchases of national bank securities by a
limited number of sophisticated purchasers who have
access to relevant information concerning the prospec¬
tive purchase of bank securities and who do not have
need for the disclosures normally provided in an offer¬
ing circular. Restrictions are placed on subsequent
distributions of shares acquired through the use of a
nonpublic offering in order to ensure that nonpublic
offerings are not used to circumvent the offering circular
requirements of Part 16. Impermissible distributions of
these securities would deprive subsequent purchasers
of information they would have received if they had
purchased shares from the bank by use of an offering
circular declared effective by the OCC.
Given the described facts and circumstances, we are
concerned about the overall handling of the bank’s
nonpublic offering contrary to the requirements of 12
CFR 16.5. Nonetheless, the bank has represented that
it corrected apparent violations of Part 1 6 once notified,
that none of the investors purchased stock based on
those circumstances, that the purchasers do not desire
rescission and that they were not harmed. Specifically,
however, we find that the financial materials supplied to
the prospective purchasers did not satisfy all the re¬
quirements of 12 CFR 16.5(c).
In light of the bank’s representations and cooperation,
we request that the bank offer the current investors the
right to rescind their purchases based on the failure of
the bank to provide accurate and up-to-date financial
information in accordance with 12 CFR 16.5(c). If the
bank agrees to the following conditions and offers
rescission rights, then the OCC staff would agree to
recommend no further action at this time with respect
to the bank’s failure to meet the requirements of Part 1 6
in this matter. The bank also could resume the non¬
public offering in accordance with all applicable re¬
quirements. The bank must agree to:
(1) make an offer to rescind the sale of the bank
stock to each of the purchasers for the full pur¬
chase price plus interest;
(2) make full disclosure to each of the purchasers
of the reasons for the rescission offer, i.e. the
bank’s failure to comply with Part 1 6, the facts and
circumstances surrounding the failure, the OCC's
position as stated in this letter, and any material
information necessary to make the statements
made, in light of the circumstances under which
they are made, not misleading;
(3) provide updated financial information to each
purchaser as required by section 16.5(c); and.
58
(4) not to sell or resell any shares without comply¬
ing fully with applicable provisions of Part 16.
Please advise us by July 20, 1992, if the bank agrees
to this recommendation. We also would expect the
bank to provide us copies of the items to be distributed
to the investors for prior review and comment by this
division. While we have determined not to recommend
further enforcement action in this instance if the bank
agrees to the above request, this determination is
based solely on the facts as described, and the
presence of additional facts or material changes in
circumstances could lead to a different result. Hence,
this letter may not be construed to limit in any way the
right of the OCC to take, at any time, appropriate
remedial action designed to ensure the bank’s com¬
pliance both with OCC regulations and with the require¬
ments of the federal securities and national banking
laws. The OCC also reserves the right to take any
appropriate action in the future to remedy bank viola¬
tions of Part 16.
Suzette H. Greco
Senior Attorney
Securities and Corporate
Practices Division
* * *
606 — August 5, 1992
We are in receipt of your letter of July 1 4, 1 992, notifying
the Office of the Comptroller of the Currency (OCC) of
two nonpublic offerings of bank stock to ***, the chair¬
man of the board of the bank, which occurred in January
and March 1992, in violation of OCC regulations. On
the basis of the facts as contained in your letter, and
subsequent conversations with both you and ***, vice-
president of the bank, we must require you to rescind
the two nonpublic offerings and proceed with one of
two options described below.
Background
Prior to the stock sale to ***, there was a total of 500
shares of bank stock outstanding. Your letter stated that
on January 18,1992, *** purchased 29 1/14 shares of
bank stock at a per-share price of $3,439.8034, for an
aggregate sale price of $100,000. In the second non¬
public offering on March 18, 1992, *** purchased an
additional 13 13/14 shares of bank stock at a per-share
price of $3,862.5950, for an aggregate sale price of
$50,572.41. *** owned 113 3/14 shares of bank stock
prior to his additional purchases in January and March.
The bank's stock totalled 543 shares after the two sales
to ***. *** stated in a conversation with this office on
August 5, 1992, that the offerings on bank stock were
not extended to any other shareholders.
You stated in your letter and subsequent conversation
with me that the bank failed to file a notice of nonpublic
offering because you were in communication with the
OCC district office in Dallas, Texas, when the decision
was made to increase capital, leading you to believe
that the bank had the necessary approval for the sale
of the stock.
Discussion
The OCC’s regulations require a national bank to file a
notice of nonpublic offering for offers, offers to sell,
offers for sale, or sales of bank securities and sets forth
conditions that a national bank must comply with if it
goes forward with such a nonpublic offering. See 12
CFR 16.5. The transactions as described in your letter
clearly present violations of 12 CFR Part 16 (Part 16).
Part 16 requires that a notice of nonpublic offering be
submitted to the OCC prior to “the time any security is
offered or sold in reliance on the exemption provided
by section 16.5.” 12 CFR 16.5(f). The bank failed to
provide prior notice to the OCC in advance of either of
the two sales of bank stock to ***. The bank also failed
to comply with the preemptive rights provisions of its
Articles of Association when it sold bank stock to ***.
Article V of the bank’s Articles of Association states, in
relevant part:
In the event of an increase in said capital stock by
the sale of additional shares thereof, each
shareholder shall be entitled to subscribe for each
additional shares in proportion to the number of
shares of said capital stock owned by him before
the stock is increased.
In view of these circumstances, the bank must rescind
the stock sales described in your letter and proceed
with one of two options:
1. Make an offering of stock to all bank share¬
holders that complies with the requirements
of 12 CFR Part 16; or,
2. Obtain through a vote of all bank share¬
holders a waiver of their preemptive rights in
order that the bank may proceed with a non¬
public offering to *** ; in this case the bank
must again submit a notice of nonpublic offer¬
ing to the OCC pursuant to 12 CFR 16.5.
At this time, the staff shall not recommend taking further
action against the bank for its failure to comply with the
OCC’s offering requirements under Part 16. Although
69
the bank may not have intended to commit violations of
Part 16, the consequence of the transaction as
described in your letter and subsequent conversations
with you and *** was the commission of such violations.
The requirements of Part 16 exist to protect the invest¬
ing public and ensure the integrity of the national bank¬
ing system. This office views such violations seriously
and is declining to recommend further enforcement
action on the basis of your representations that viola¬
tions were inadvertent and should never have oc¬
curred. The staff reserves the right to recommend the
institution of action in this matter in the event that
additional facts are discovered that warrant such a
determination. We strongly urge you to review the re¬
quirements of 1 2 CFR Part 1 6 so that the bank does not
repeat such violations in the future.
Lee Walzer
Attorney
Securities, Investments, and Fiduciary
Practices Division
• performing customer-related administration
and record-keeping1;
• performing information facilitation duties
such as transmitting documents and acquir¬
ing customers’ signatures;
• coordinating sales calls by bank personnel,
including the keeping of an appointment book
for the bank officials who will meet with
prospective customers referred by a finder;
• marketing bank trust products by distributing
brochures and holding seminars to be con¬
ducted by bank personnel2;
• performing market research such as deter¬
mining the number of prospects in the finder’s
market area that meet bank criteria; and,
• identifying prospective customers through
other means.
607 — August 24, 1992
This is in response to your letter on behalf of *** ***
(bank). Your letter seeks the Office of the Comptroller
of the Currency’s (OCC) opinion on the bank's proposal
to pay referral fees to banks and other institutions and
individuals for referring trust business to the bank’s trust
division and to engage in certain activities that you state
are connected with the referral process. Our response
is based on your original letter, subsequent telephone
conversations, and a subsequent letter dated June 4,
1992. In keeping with prior OCC precedent, we have
no objection to the payment of finder's fees in a trust
context and the bank’s proposed finder's activities.
Proposed Referral Arrangements
We understand that the bank proposes to enter into
written agreements with national and state banks as
well as other individuals and institutions, including
registered investment advisors, savings associations,
savings banks, credit unions, financial planners, bene¬
fit consultants, independent insurance agents and
brokers, certified public accountants, and attorneys (to
be known collectively as finders) for the referral by them
of trust business to the bank. You have noted that the
finders will include banks with trust powers that current¬
ly exercising such powers, banks trust powers that
currently are not exercising such powers, and banks
without trust powers.
A finder's activities, according to the bank’s plan, would
include
The bank alone will perform the trust activities for
referred customers and serve as the lone fiduciary. You
warranted that no finder will negotiate with a customer,
act as co-trustee, or enter into a partnership or joint
venture with the bank in connection with its role as a
finder.
Your letter stated that the bank plans to pay finders a
fee of approximately 20 percent of the normal fee
received by the bank for the particular type of trust
service. The fee would be payable for a maximum of 5
years, at which time the fee would be reduced to 10
percent for a further period of 5 years. Finder's fees
would be payable for 10 years or the life of the trust
arrangement, whichever is shorter. The exact fees are
determined in relation to other fees paid in comparable
business situations, including the sale of life insurance
and single premium annuities. The bank intends to fully
disclose to customers the referral arrangements in
question.
As for business referrals for plans governed by the
Employee Retirement Income Security Act of 1974
(ERISA), you stated that the bank intends to enter into
written compensation agreements with the finders
'in a telephone conversation with me on June 4, 1992, and in a
subsequent letter dated the same day, you stated that the proposed
customer related administration and record-keeping function would
be limited to the retention of copies of periodic account summaries
prepared by the bank for customers.
mu stressed that all promotional material would make clear that only
the bank would be providing fiduciary services to customers
70
before the bank enters into a fiduciary relationship with
any ERISA plans and screen finders before paying any
fees to insure that the finder does not act as the plan
fiduciary under ERISA. The bank will not pay the finder's
fee from plan assets. In this manner, the bank intends
to avoid potential conflict with ERISA’s fiduciary stand¬
ards.
Precedent and Law
Notwithstanding the silence of the governing statute,
there is substantial legal authority to permit a national
bank to undertake the finder's activities and relation¬
ships that the bank proposes. The federal statute
governing national bank trust activities is silent con¬
cerning the permissibility of paying or receiving finder’s
fees for the referral of trust business. See 12 U.S.C.
92a(a). Section 92a(a) simply allows national banks to
engage in trust business to the extent permissible for
state banks. A number of OCC regulations and inter¬
pretive letters, however, provide support for the
authority of national banks to engage in the finder’s
activities that the bank proposes.
Regulations and Interpretive Letters
There is clear authority for national banks to pay and
receive finder's fees for the referral of business. Comp¬
troller’s Handbook for Fiduciary Activities section
9.221 5. OCC regulations also provide limitations on the
extent to which a national bank may act as finder
generally. 12 CFR 7.7200. In accepting a finder's fee, a
national bank, on the face of the regulation, is limited to
facilitating introductory contacts between two parties
and then ceasing involvement with the transaction in
question. These regulations, however, do not provide
clear guidance on the amount of the fees that may be
negotiated or the extent of the finder’s permissible
activities. OCC interpretive letters have provided such
additional guidance.
Interpretive Letters on the Payment of Finder’s Fees
A series of OCC precedent letters provides guidance
on the amount of a finder’s fee, including the length of
time over which such a fee may be paid. In Trust
Interpretive Letter No. 78 (March 4, 1987), the OCC
approved the payment of finder’s fees to institutions or
individuals who refer trust business to a national bank's
trust department, and stressed that the referral or
finder's fee should be "reasonable."
In OCC Interpretive Letter No. 504 (May 18, 1990), a
national bank in organization wished to pay finder's fees
to financial institutions and others, including registered
investment advisers, financial planners, benefit con¬
sultants, independent insurance agents and brokers,
certified public accountants and attorneys, for the
referral of trust business. Proposed parties to the
relationship did not all have trust powers. The bank
planned to pay approximately 17 percent of the fees it
received on an account to a finder for up to 5 years,
with the payment being reduced thereafter to 9 or 10
percent. The bank made clear that full disclosure of
such fees would be made to customers and that fees
would terminate once an account was closed or no later
than 10 years, whichever came first.
The OCC also addressed the question whether pay¬
ment of finder's fees for up to 10 years raised concerns
about involving the bank in an impermissible joint ven¬
ture. See Merchants National Bank v. Wehrmann, 202
U.S. 295, 301 (1903). Looking to state law for guidance,
however, we determined that the payment of a share of
profits does not by itself give rise to a joint venture.
Instead, mutual control, defined as a "right, expressed
or implied, of each member of the joint venture to direct
and control the conduct of the other," is the determining
factor in analyzing whether a joint venture exists.3 Be¬
cause the proposed finder’s relationship lacked mutual
control over the account, the OCC found the proposal
permissible.
Interpretive Letters on Finder’s Activities
A separate line of letters has established guidelines for
banking and nonbanking activities in which national
banks may engage and receive finder's fees. OCC
interpretive letters are silent on the scope of permissible
finder's activities in a trust context.
The OCC has noted that a national bank may perform
certain functions in the course of acting as a finder,
including acting as a conduit in conveying loan terms
to prospective borrowers, or supplying financial infor¬
mation about the other party. Letter of Roberta W.
Boylan (October 17, 1980) (unpublished). Such ac-
3Counsel has stated that the proposed arrangements would not give
rise to a joint venture under Tennessee law To establish a joint venture
under Tennessee law, there must be a "common purpose, some
manner of agreement amongst them and an equal right on the part
of each to control both the venture as a whole and any relevant
instrumentality." Dewberry v. Maddox, 755 S W 2d 50, 56 (Tenn App
1988), citing Cecil v. Hardin, 575 SW 2d 268, 271 (Tenn 1978)
Robertson v. Lyons, 553 S.W.2d 754, 757 (Tenn. App 1977), Spencer
Kellogg <S Son, Inc. v. Lobban, 315 S W 2d 514, 520 (Tenn 1958)
We note that these cases, however, do not interpret the term "|oint
venture" with respect to financial institutions
71
tivities were deemed to be services that a national bank
normally provides to its customers. A national bank
acting as finder also is permitted to make inquiries as
to interest, arrange a meeting of the interested parties,
and provide information pertinent to the meeting of the
buyer and seller. Letter of James Kane, District Counsel
(October 24, 1985) (unpublished).
The OCC has allowed national banks to act as finders
in a variety of nonbanking areas, such as aiding cus¬
tomers in placing orders for airline tickets, and referring
customers to a tax audit representation service. Letter
of Chief Counsel Paul Allan Schott (May 9, 1988) (un¬
published); Interpretive Letter No. 437 (July 27, 1988).
A national bank is permitted to act as a finder for an
insurance company, by sending information about the
company's insurance services to its correspondent
banks, and forwarding any interested replies to the
company for follow up. Letter of James Kane, supra. In
other letters, we have allowed a national bank to act as
a finder for: a service that would assist foreign bank
customers seeking major medical and life insurance
coverage (Letter of Elizabeth H. Corey, Attorney (May
18, 1989) (unpublished)); and an automobile club (No
Objection Letter No. 89-02 (April 7, 1989)).
Analysis of Finder’s Activities
The bank seeks confirmation that the activity of a finder
of trust business may include certain directly related
activities, including the introduction of parties to a
transaction, that are clerical or administrative in nature.
The OCC has permitted such activities for finders and
confirms the appropriateness of these activities for
finders of trust business. Such activities have included
distribution of informational materials, identification of
interested customers, and record-keeping. The ac¬
tivities the bank proposes for finders in this case are
related to introduction of interested parties, or essen¬
tially administrative or clerical functions that do not
imply a joint venture between the bank and its finders.
The bank seeks confirmation that a finder may engage
in ongoing activities subsequent to any referral of
prospective customers, as the bank proposes. We find
nothing in OCC precedent that would prohibit the per¬
formance of permissible finder's activities on an on¬
going basis, not to exceed the term during which
finder's fees may be paid. Indeed, OCC finder’s ac¬
tivities letters in a non-trust context approve of such
arrangements. See, e g., Interpretive Letter No. 437,
supra, Letter of Elizabeth H. Corey, supra ; Letter of
James Kane, supra.
In determining the scope of permissible "introductory"
activities in which a finder of trust services may engage,
we must take into account the fiduciary duties that arise
out of a trust relationship.4 We conclude that the under¬
lying finder’s activities themselves do not appear to
compromise or violate the bank’s fiduciary duty to those
using its trust services so long as prospective cus¬
tomers indeed are aware of the identity of the party (the
bank) that will actually be providing the trust services
in question. We require that in all finder activities the
finder must clearly identify the bank as the fiduciary and
provider of trust services in any dealings that it has with
prospective or actual customers, and make that distinc¬
tion clear in any promotional efforts or materials for
which it is responsible or are in its possession.
Administration and Record-Keeping
A national bank finder may perform limited customer-
related administration and record-keeping functions,
consistent with the bank’s proposal. Retaining copies
of periodic account summaries prepared by the bank
for its customers appears to be a purely clerical func¬
tion. This activity is consistent with providing back office
clerical support and identifying prospective customers
interested in the bank's trust services. See Letter of
Elizabeth H. Corey, attorney, supra (a finder may act as
a conduit in conveying information from one party to
another). The finder is not responsible for preparing
such documents and would be keeping such copies
only for the administrative convenience of customers.
Such a function involves only the handling, rather than
the generation or production, of limited documentary
material. The finder, however, must be careful only to
provide copies of documents, rather than advice as to
their meaning or impact, which would be impermissible
absent a fiduciary relationship.
Transmittal of Documents and Customer Signatures
National bank trustees may use finders to transmit
documents to them and acquire customer signatures.
Such activities are adjuncts to the referral of trust busi¬
ness and similar to those which we approved in Inter¬
pretive Letter No. 437. In that case, a national bank
identified customers interested in a tax auditing repre¬
sentation service and forwarded the customer’s fee and
application to the auditor. Likewise, in the letter of
4There is not a specific requirement that all finders have trust powers.
For example, in Interpretive Letter No. 504, supra, we did not object
to an attorney or accountant acting as a finder. Where a bank acts
as a finder, however, in certain cases it may be appropriate from a
supervisory standpoint that the finding bank also has trust powers
In Trust Interpretive Letter No. 78, supra, for example, the OCC stated
clearly that a finder "should" have trust powers Where a national bank
proposes to act as a finder for a national bank trustee, regardless of
whether it possesses trust powers, it must make clear to prospective
customers through appropriate disclosures that it does not and will
not act as a fiduciary
72
William B. Glidden, Assistant Director (May 8, 1986)
(unpublished), the OCC permitted a finder's arrange¬
ment in which a national bank forwarded customers'
owner's and auto insurance forms to an insurer.5 The
transmission of documents and acquisition of signa¬
tures is arguably related to business referral and the
finder's role once again is clerical in nature.
Scheduling of Sales Calls
The arrangement and scheduling of sales calls by
finders also constitutes part of the referral process so
long as it does net entail finder involvement in the actual
trust arrangements and daily business decision¬
making concerning the trust business in question. The
role of a finder is to send prospective customers to
those who seek such referrals. The keeping of a calling
officer appointment book is a permissible activity ad¬
junct to that process. Allowing a finder to schedule
sales calls is a logical outgrowth of permitting a finder
to forward expressions of interest from its correspon¬
dent bank:, in the insurance services being offered by
an insurance company. See Letter of James Kane
(October 24, 1985) (unpublished). Such activity also is
consistent with precedent in which a national bank was
permitted as findei to sell client lists to an automobile
club on whose behalf it was acting as finder, thereby
enabling the club to make contact with the bank’s
customers. No Objection Letter No. 89-02 (April 17,
1989).
The keeping of such an appointment book by a finder
constitutes an administrative convenience for the bank
and does not involve a finder in the actual sales calls
themselves. See Interpretive Letter No. 472 (permitting
insurer to contact prospective customers after receiv¬
ing underwriting information from lender). In arranging
such sales calls, a finder must make clear that the call
is being scheduled on behalf of the bank.
Market Research
Finders may perform market research to identify poten¬
tial customers. Such support activities do not involve
the finder in business decision-making concerning any
resulting trust business that may develop. This activity
is similar to that discussed in No Objection Letter No.
89-02, in wmch the OCC allowed a national bank as
finder to introduce an automobile club to dealers or
others that wished to sell club memberships as agents
or subagents of the club, and even sell to the club its
customer lists, which could be deemed a basic form of
^he finder’s fee in this case was based not on placement of in¬
surance coverage but on the number of times a particular service
was rendered.
market research. If acting as a finder — which neces¬
sitates finding customers for a party — is permissible,
then activities that facilitate that underlying activity must
also be permissible.
Distribution of Brochures and Conducting of Seminars
Finders also may market bank trust products by dis¬
tributing brochures and holding seminars to be con¬
ducted by bank personnel. In an unpublished letter
dated July 27, 1988, the OCC stated that it had no
objection to a finder keeping promotional materials on
the premises or mailing such materials to its customers
in monthly statements so long as the finder makes clear
that the materials are not for the finder’s own services.
These activities are analogous to a national bank’s
distributing brochures on behalf of an automobile club,
so long as the brochures make clear whose products
are being discussed. See No Objection Letter No.
89-02. Such activities are an integral part of the finder’s
efforts to develop customers, for they constitute the
means by which prospective customers likely will learn
of the bank’s products.
ERISA Issues
The bank stated that it had structured its proposals to
avoid potential violations of ERISA. The bank intends to
enter into written compensation agreements with the
finders before the bank enters into a fiduciary relation¬
ship with any ERISA plans and screen finders before
paying any fees to insure that the finder does not act
as a plan fiduciary under ERISA. Furthermore, the bank
states that it will not pay the finder's fee from plan
assets.
Interpretive Letter No. 504 also discussed the ap¬
plicability of ERISA to national bank finders' activities.
In that letter, the bank planned to establish tax-exempt
collective investment funds that might be subject in
certain instances to ERISA requirements. Although
declining to undertake a comprehensive analysis of
ERISA, the OCC noted that section 406(b)(3) of ERISA,
29 U.S.C. 1106(b)(3), states that a fiduciary may not
"receive any consideration for his own personal ac¬
count from any party dealing with such plan in connec¬
tion with a transaction involving the assets of the plan."
Furthermore, section 404(a)(1)(a) of ERISA, 29 U.S.C.
1104(a)(1)(a), mandates that a fiduciary discharge its
duties solely in the interests of plan participants and
beneficiaries. The OCC stated in Interpretive Letter No.
504 that if a bank is an ERISA fiduciary at the time it
pays a finder's fee, payment of the fee could be con¬
strued as an action taken in the bank's own interest
rather than in the interests of plan participants and
beneficiaries. We would note that for dispositive
analysis of the ERISA issues that the bank’s proposed
73
transaction raises, you should seek the advice of the
Department of Labor.
Conclusion
We have no objection to the bank’s proposal regarding
finder’s activities as set forth in its letter to the OCC, and
supplemented by representations that you have made
in subsequent telephone conversations, and in your
letter of June 4, 1992. None of the above activities
appears to raise joint venture issues since the activities
in which the bank proposes that the finders engage
would not enable the finders to control the proposed
trust activities. The finders would be performing essen¬
tially clerical and routine tasks and would not be making
business decisions for or with the bank in conjunction
with any trust business generated by the finder relation¬
ship.
We stress here that the bank must be the party actually
administering the trust accounts and generating
relevant documentation on them. The bank must care¬
fully monitor the activities of its finders to satisfy
fiduciary duties owned to trust customers.
We remind the bank to ensure that finders make clear
to prospective referrals that the trust products being
provided are those of the bank and not the finder’s.
Likewise, prospective customers must be aware that a
finder may be providing certain support services for the
bank. The bank must ensure that finder's fees are fully
disclosed to prospective customers. We also remind
the bank of its responsibility in situations where the
bank enters into a fiduciary relationship with an ERISA
plan to insure that the finder is not acting as the plan’s
fiduciary; failure to do so could result in violations of 29
U.S.C. 1104 and 1106.
Lee Walzer
Attorney
Securities, Investments, and
Fiduciary Practices Division
* ★ *
608— August 27, 1992
This is in reply to your letter dated June 23, 1 992, to Mr.
William Granovsky regarding a proposal by *** ***, to
establish and operate the “*** *** Collective Investment
Fund for Qualified Trusts" (the fund). The fund will
provide for the collective investment of (1) individual
retirement account (IRA) trust assets established under
a trust agreement with the bank and maintained in
conformity with section 408(a) of the Internal Revenue
Code of 1986, as amended (IRC) and exempt from
taxation under section 408(e) of the IRC and (2) the
assets from single or commingled pension or profit-
sharing trusts, including single or commingled pension
or profit-sharing trusts benefiting one or more self-
employed individuals, established under a trust agree¬
ment with the bank and maintained in conformity with
section 401(a) of the IRC and exempt from taxation
under section 501(a) of the IRC. This letter also con¬
firms subsequent telephone conversations with staff
regarding the bank's proposal.
You represent that the fund is identical in all material
respects to other collective investment trusts approved
by the Office of the Comptroller of the Currency (OCC).
See OCC Staff Interpretive Letter No. 446 (February 25,
1 988); OCC Staff Interpretive Letter No. 41 3 (December
30, 1987). The trusts described in those letters are
materially the same, with two exceptions noted below,
to the collective investment trusts approved by the OCC
in the applications of Chase Manhattan Bank, N.A.
(November 1 4, 1 986) (Chase Manhattan Approval) and
First Fidelity Bank, N.A. (March 19, 1987) ( First Fidelity
Approval). Furthermore, but for the addition of single or
commingled pension or profit-sharing trusts funds,
those trusts and the bank’s proposal are similar in all
material respects to other collective IRA trusts pre¬
viously approved by the OCC. See Decision of the
Comptroller of the Currency on the Application by
Citibank, N.A., Pursuant to 12CFR 9.18(c)(5) to Estab¬
lish Common Trust Funds for the Collective Investment
of Individual Retirement Account Trusts Exempt from
Taxation under Section 408 of the Internal Revenue
Code of 1954 (October 21, 1982) (Citibank Decision);
Decision of the Office of Comptroller of the Currency on
the Application by Wells Fargo Bank, N.A., to Establish
a Common Trust Fund for the Collective Investment of
Individual Retirement Account Trust Assets Exempt
from Taxation under Section 408(a) of the Internal
Revenue Code of 1954, as Amended (January 27,
1984) (Wells Fargo Decision); Decision of the Comp¬
troller of the Currency on the Application of Connecticut
Bank and Trust Company, N.A., to Establish a Common
Trust Fund for the Collective Investment of Individual
Retirement Account Trust Assets Exempt from Taxation
under Section 408(a) of the Internal Revenue Code of
1954, as Amended (February 7, 1985) (Connecticut
Bank and Trust Decision). These decisions have been
upheld in opinions by the Courts of Appeals for the
District of Columbia, Ninth and Second Circuits,
respectively (collectively, the IRA Cases).1
'investment Company Institute v. Conover, 790 F2d 925 (D C Cir.
1986); Investment Company Institute v. Clarke , 793 F.2d 220 (9th Cir.
1986); Investment Company Institute v Clarke, 789 F 2d 175 (2d Cir.
1986) (per cerium) In December 1986, the United States Supreme
Court denied certiorari in all three cases See Investment Company
Institute v Clarke, 479 U S 939 (1986)
74
The OCC is of the view that the activities described in your
letter and the supporting documents provided constitute
lawful bank fiduciary activities which comply with the
requirements of 12 CFR 9 (except for certain provisions
with respect to which the OCC exercises its approval
authority under 12 CFR 9.18(c)(5)) and are not inconsis¬
tent with the requirements of the Glass-Steagall Act.
Our conclusion representing the permissibility of the
fiduciary services proposed to be offered by the bank
is supported by the nature of the relationships between
the bank as trustee of the fund, and the bank as trustee
of the individual trusts participating in the fund. You
have represented that the fund will be established
under the laws of the State of New York.2 On the basis
of our review of the proposal and if the requirements of
New York law for the establishment of a valid trust are
met, we are satisfied that, under the terms of 12 U.S.C.
92a, the bank is empowered to offer the fiduciary
services represented by the fund. The bank also in¬
tends to register the fund with the Securities and Ex¬
change Commission as an open-end diversified
management investment company under the Invest¬
ment Company Act of 1 940, as amended. The units of
beneficial interest will be registered under the
Securities Act of 1933, as amended.
In two respects the bank’s proposal raises questions
concerning its conformance to the requirements of 12
CFR 9.18(b). The pertinent provisions require the out¬
side auditors to be responsible solely to the bank's
board of directors and require the bank to exercise
exclusive management over its collective investment
funds. See 12 CFR 9. 1 8(b)(5)(i) and (b)(12). Both
provisions may raise questions with respect to the
operation of the bank’s fund which arise out of the
bank’s decision to register the fund with the Securities
and Exchange Commission (SEC) as an “investment
company” under the Investment Company Act of 1 940,
15 U.S.C. 80a-1 et seq. However, the decisions of the
OCC which were upheld in the above-cited IRA Cases
addressed these same questions and concluded that
the respective banks were permitted to operate their
trust plans in compliance with 12 CFR 9.18.
The bank’s proposal and the plans approved in the
Chase Manhattan Approval and the First Fidelity Ap¬
proval differ from the earlier collective IRA plans in that
they commingle in the collective investment trust IRA
trust funds with single or commingled pension or profit-
sharing trusts (section 401 trusts funds). The collective
2You have represented that the Declaration of Trust and the par¬
ticipating trust agreements comport with the requirements of New
York state law as to the validity of the trust and the participating trusts
as well as complying with any applicable state laws governing the
establishment of common trust funds.
investment of section 401 trust funds is a traditional
banking service which banks have long performed. The
exemption from taxation which IRC sections 401(a) and
501 (a) provide is available only to "qualified trusts” and,
accordingly, contemplates the existence of a true
fiduciary purpose for all such trusts. Thus, the collective
investment of section 401 trust funds involves no less
a true fiduciary purpose than the collective investment
of IRA trust assets. This activity will not jeopardize the
exemption from federal taxation separately accorded
each type of trust fund. See IRC section 408(e)(6) and
Rev. Rule 81-100. The trust interests will be registered
with the SEC under the Securities Act of 1933 and the
Investment Company Act of 1940, regardless of those
exemptions from registration which normally are avail¬
able to collective investment funds for the collective
investment of section 401 trust funds.
For the reasons set forth in this letter and consistent with
earlier OCC decisions, we grant permission pursuant
to 12 CFR 9.18(c)(5) for the bank to operate the
proposed fund. As with the previous decisions, the
OCC reserves the right to rescind this approval should
the supervisory committee of the fund interfere with or
terminate the management duties of the bank as trustee
and investment advisor to the fund.
Similar to the proposals described in interpretive letters
no. 446 and 413, the bank’s proposed fund differs in
two further respects from those approved in the above-
referenced cases. First, the bank, as trustee, proposes
to charge the fund an ongoing fee that for certain
participating trusts may in the future result in an incon¬
sistency with the fee requirements of 12 CFR
9.18(b)(12). Second, under the Investment Manage¬
ment Agreement and pursuant to related repre¬
sentations you have made on the bank’s behalf, trust
purchases of securities from issuers that have banking
relationships with the bank are restricted to comport
with the requirements of 12 CFR 9.12(a). As discussed
below and consistent with earlier OCC letters, we do
not view these differences as a bar to the OCC’s ap¬
proval of the fund. See OCC staff Interpretive Letter No.
446 (February 25, 1988); OCC Staff Interpretive Letter
No. 413 (December 30, 1987).
Fee for Participating Trusts
The bank plans to charge the trust an ongoing fee
based on an annualized percentage of net assets. With
regard to fees, 12 CFR 9.18(b)(12) provides:
The bank may charge a fee for the management
of the collective investment fund provided that the
fractional part of such fee proportionate to the
interest of each participant shall not, when added
to any other compensations charged by a bank
75
to a participant, exceed the total amount of com¬
pensations which would have been charged to
said participant if no assets of said participant
had been invested in participations in the fund.
You have represented that generally compliance with
this provision does not present a problem and that the
bank is unaware of any current inconsistency with this
requirement. However, you have noted the theoretical
possibility that participants in certain bank managed
IRA trusts which are exempt from taxation under section
408 of the IRC, as well as pension or profit-sharing
trusts maintained in conformity with section 401 of the
IRC, might be able to obtain management services for
a fee in an amount less than that which the bank
proposes to charge at some future time, a situation
which could be deemed to present a potential violation
of the above regulation.
While it appears that a 1 2 CFR 9. 1 8(c)(5) waiver of this
restriction might be warranted in the future depending
on an actual situation necessitating such a request, it
is our understanding that under the present circumstan¬
ces such a waiver is unnecessary. As such, the OCC is
not granting the bank this waiver at this time. The OCC
will gladly consider all of the circumstances should the
need for a waiver occur in the future and the bank
makes a specific request.
Permissible Investments
Section 2(a)(vi) of the Investment Management Agree¬
ment provides:
The trustee may have deposit, loan and other com¬
mercial banking relationships with issuers of
securities purchased by the Trust, including out¬
standing loans to such issuers which may be repaid
in whole or in part with proceeds of securities pur¬
chased by the Trust. However, the Trustee will not
purchase securities in registered or unregistered
offerings where the Trustee knows, or should know,
that the proceeds of the offering will be used to
repay loans from the Trustee.
As you know, 12 CFR 9.12(a) prohibits national banks,
unless lawfully authorized by the trust agreement, court
order or state law, from investing trust funds "in stock
or obligations of . . . individuals or organizations in
which there exists such an interest, as might affect the
exercise of the best judgement of the bank in acquiring
the . stock or obligations." You have represented that,
to prevent violations of 1 2 CFR 9. 1 2(a), when the trustee
has reason to believe that the issuer will use the
proceeds from an offering to repay loans or other bor¬
rowings, the trustee has a duty to inquire as to the
identity of the lenders In the event that the bank is one
of the lenders, the trustee will not purchase the
securities. In addition, you have represented that
should the trustee unknowingly purchase securities
from an issuer, where the proceeds are used to defray
loans or other borrowings from the bank, upon dis¬
covery of this fact, the bank will promptly resell these
securities at a profit or no loss to the trust.
Generally, the use of proceeds from an offering is
considered material information which must be dis¬
closed to prospective investors. Among other things,
the SEC’s securities offering disclosure regulations
adopted under the Securities Act of 1933 require the
issuer to disclose the manner in which the offering
proceeds will be used. See Securities Act of 1933,
Forms S-1 (Item 4), S-2 (Item 4), and S-3 (Item 4). Since
the bank will disclose to participants that it will not
purchase securities in a primary offering where it knows
or should know that the proceeds will be used to repay
loans to the bank and since the trustee recognizes its
duty to make a reasonable inquiry sufficient to satisfy
its legal obligations in this regard, we believe that the
requirements of 12 CFR 9.12(a) are satisfied and that
the OCC may permit the proposed activity.
While we have referred to the proposed Declaration of
Trust submitted along with your letter in our considera¬
tion of this matter, we advise you that it remains the
obligation of the bank to ensure full compliance with 1 2
CFR Part 9, including that the provisions of the Decla¬
ration of Trust are in conformity with the requirements of
12 CFR 9.18(b)(1). We have not reviewed the Declara¬
tion in its entirety and offer no opinion as to its con¬
formity with Part 9 except as discussed herein.
As our position is based on the specific facts and
representations you have made, please be advised that
any alteration in the terms of the bank’s proposal might
require another interpretation. Further, while this letter
provides no opinion regarding other statutory and
fiduciary obligations of the bank pertaining to this mat¬
ter, it is our understanding that the bank will comply with
all applicable state laws, securities laws, or any other
applicable laws.
Dean E. Miller
Senior Advisor for
Fiduciary Responsibilities
Compliance Management Department
609 — September 25, 1992
This is in response to your letter of June 16, 1992, in
which you inquire whether a bank may confer the title
76
"Area President" on certain senior managers of
separate business units of the bank. You state that ***
as well as ***, subsidiaries of ***, wish to vest in certain
senior managers the authority to make adjustments to
products and services on a regional basis. To ac¬
complish this goal, each bank has created several
market "areas” and wishes to designate certain senior
managers as "Area Presidents" who will be delegated
the authority to make such adjustments as needs and
conditions in the local area markets dictate. Area Presi¬
dents will be subordinate to the President, as in the
case of Vice Presidents, Senior Vice Presidents, etc.
Business cards and letterhead will designate the ex¬
ecutive as an officer of the bank. The title "Area Presi¬
dent" will be used together with a reference to the
particular business unit. You gave the following ex¬
ample of the use of the “Area President” title: ***
Several statutes or interpretive rulings applicable to
national banks provide that the board of directors shall
have the power to appoint a president, vice president,
cashier and other officers, that the president shall be a
member of the board, and that separate persons
should occupy the offices of president and cashier. See
12 U.S.C. 24(Fifth) and 76; Interpretive Rulings 7.5200
and 7.5210, 12 CFR 7.5200 and 7.5210.
Nothing in the above authorities restricts the use of the
term “president" in the titles of other positions, par¬
ticularly when combined with other adjectives describ¬
ing the positions. Thus we have no objection to the
designation by *** *** of certain senior managers as
"Area Presidents." The bank should be cautioned, how¬
ever, against assigning titles in any manner which could
impede the supervisory process or result in customer
confusion.
Michael C. Dugas
Senior Attorney
Securities and Corporate
Practices Division
* ★ ★
610— October 8, 1992
This is in response to your inquiry concerning whether
the OCC would object to the utilization by existing
deposit account and loan customers of national banks
located in Illinois and owned by *** (the holding com¬
pany) of certain accommodation services offered to
them by affiliated banks in Illinois to facilitate deposits
and withdrawals from their national bank deposit ac¬
counts and the making of loan payments. You refer to
this service as "facility banking." For purposes of clarity,
this letter will refer to the bank at which the customer
holds the deposit account as the “customer bank" and
the bank providing the services at issue as either the
"affiliate facility” or the "service bank.”
Background
The holding company owns several national banks and
state-chartered banks in Illinois. It has inquired whether
its banks can provide facility banking to their deposit
account customers equivalent to that permitted to state
banks under state law. Illinois law, which took effect on
July 1, 1992, provides that state banks may:
conduct at affiliate facilities any of the following
transactions for and on behalf of another com¬
monly owned bank, if so authorized by the other
bank: receiving deposits; cashing and issuing
checks, drafts and money orders; changing
money; and receiving payments of existing in¬
debtedness.
III. Ann. Stat. ch. 17, para. 311, 5(23) (Smith-Hurd
1992). For purposes of this statute:
affiliate facility means a main banking premises or
branch in this State of another commonly owned
bank that has its main banking premises in this
State.
Id. at para. 302 section 2. The statute further provides
that such a facility may be an affiliate facility "with
respect to one or more other commonly owned banks."
Id. Such facilities are not considered under state law to
be branches, and are not subject to the usual approval
procedures imposed by state law with respect to the
establishment of branches. State law does, however,
require banks intending to so use affiliate facilities to
give the banking commissioner at least 30 days written
notice.
Question
You ask whether the holding company's national banks
in Illinois may use affiliate facilities in Illinois to provide
accommodation services, equivalent to those services
which state law permits state banks to provide, to their
customers without such facilities being considered to
be branches of the national banks. Specifically, accom¬
modation services proposed to be available at such
facilities would include depositing and withdrawing
funds into and from deposit accounts and the making
of loan payments.
Conclusion
On the basis of the facts you have presented to us, as
more fully described below, the OCC has no objection
77
to the proposal under which national banks would
provide accommodation services, equivalent to ser¬
vices authorized by state law for state banks, to cus¬
tomers at affiliate facilities in Illinois. The proposal
permits customers of national banks in Illinois to under¬
take transactions, which are virtually identical to trans¬
actions which they may undertake at CBCT machines
located at such affiliate facilities, at a teller window at
the same affiliate facilities. Moreover, banks have a long
history of providing similar accommodation and cor¬
respondent banking services to customers of other
banks on both a formal and informal basis. Finally,
based on the decisions of the Courts of Appeals in
Independent Bankers Association of America v. Smith,
534 F.2d 921 (D C. Cir), cert, denied, 429 U.S. 862
( 1 976) {Smith) and in Independent Bankers Association
of New York State v. Marine Midland Bank, N.A., 757
F.2d 453 (2d Cir. 1985) {Marine Midland), cert, denied,
476 U.S. 1 1 86 ( 1 986), the OCC would not consider the
service bank to be a branch of the customer bank under
the facts which you have presented.
Facts
You have asked for our views only with respect to
accommodation services to be provided by the holding
company at existing, viable commonly controlled
banks in Illinois. You have indicated that the services
would be provided by employees of such service banks
and not by employees of the customer bank, and that
the provision of such services would constitute a rela¬
tively insignificant proportion of the business of each of
the banks providing services.
You also state that costs would be allocated between
the service bank and the customer bank on an arm’s
length basis and that problems arising with respect to
the handling of a transaction would be resolved by the
customer bank in the same manner and through the
same process as such bank generally follows in resolv¬
ing such problems.
You represent that, in accordance with principles of
safety and soundness, the service bank and the cus¬
tomer bank would clarify among themselves who bears
the risk of loss with respect to items while in transit, the
legal relationship between themselves, and when ac¬
counts will be credited with deposits and charged for
withdrawals. In addition, the banks participating in
such arrangements would establish appropriate proce¬
dures for identifying, segregating, and properly record¬
ing items received by the service bank on behalf of the
customer bank, establish appropriate procedures for
identifying customers seeking withdrawals and verify¬
ing such transactions, and establish appropriate
withdrawal limitations. The service bank and the cus¬
tomer bank also would develop policies with respect to
record-keeping, reporting, and disclosures to cus¬
tomers to assure that all legal and prudential require¬
ments, including any relevant laws regarding financial
privacy, to which each institution is subject, would be
satisfied.
In addition, the explanation of the accommodation ser¬
vices provided by the banks to accommodation cus¬
tomers would indicate the name of the bank providing
the service and make it clear that the service bank is a
separate entity which is not their bank of deposit. You
also indicate that the institutions would develop ap¬
propriate procedures for notifying customers of any
changes in service offered through such service banks.
Discussion
In essence, the proposal would enable customers of
various banks in Illinois to avail themselves of deposit
account services offered at the sites of, and through
tellers employed by, other affiliated banks in Illinois.
Consequently, where a customer may now use a CBCT
machine located at another Illinois bank to deposit
money into or withdraw money from his or her deposit
account established at the customer’s bank of deposit,
the proposal would permit such customer to undertake
such transactions at a teller window at such other
banks. Moreover, we note that banks have arranged for
customers to undertake deposit account transactions
at other banks well before the establishment of
electronic banking. In fact, banks have a long history
of arranging for customers to conduct banking busi¬
ness at out-of-town banks. Such services have long
been made available to customers while traveling away
from home through mechanisms such as traveler’s let¬
ters and letters of reference coupled with various forms
of guarantees and indemnification. See A.C. Whitaker,
Foreign Exchange 212-214 (1933); G.W. Edwards,
Foreign Commercial Credits 57-63 (1922). In neither of
these contexts has the service facility been considered
to be a branch of the customer’s bank. In addition, the
Supreme Court, in the context of a discussion of the
applicability of the antitrust laws to a merger of cor¬
respondent banks, has recognized the history and
evolving scope of correspondent banking practices
which have included the provision of retail services to
customers of one bank through the facilities of another
bank. See United States v. Citizens & Southern National
Bank. 422 U.S. 86, 1 14 (1975).1
'That Court stated
Dating back to colonial times, correspondent banking originally
provided an extended network of independent unit banks with
a link to financial centers, and at the same time furnished central
banking functions Today, as a vital component of the era of
electronic banking, it enables city correspondents to provide
customers with a range of services that is varied, extensive, and
constantly expanding
78
The courts have recognized that not all facilities that act
as conduits between a bank and its customers in facilitat¬
ing deposit account transactions are considered as
branches of the bank under the McFadden Act. For
example, the court in Smith determined that a post office,
through which deposits are sent by customers to banks,
could not be considered to be a branch because it was
not established by a bank. In contrast, the court deter¬
mined that a CBCT owned by a bank was considered to
be a branch. Smith at 941. Building on that, the court in
Marine Midland held that automatic teller machines
owned and operated by an independent company, the
Wegmans supermarket chain, which were available at
store sites for use by customers of several financial
institutions, were not established by, and did not con¬
stitute branches, of Marine Midland, whose customers
could use the machines.* 2
Id. at 1 14, 1 15.
In addition, the OCC has long recognized that national banks can
provide deposit-related services to other banks as part of the cor¬
respondent services that banks traditionally have provided to other
banks. See November 30, 1987 Interpretive Letter, reprinted In Fed.
Banking Law Rep. (CCH) para. 84,040 (permitting customers of other
financial institutions to carry out deposit and withdrawal transactions
through the bank’s automated teller machines, the preparation and
issuance of ATM debit cards for customers of other financial institu¬
tions and providing account maintenance services, marketing ser¬
vices, and servicing the ATM machines; November 22, 1989
Interpretive Letter (national banks can perform various deposit re¬
lated services for other financial institutions such as correspondent
services necessary for efficient operation of the banking system.
Sen/ices approved in this letter included back office operations,
contact with customers by telephone and mail, preparation of activity
statements and notices, deposit confirmation, management of ac¬
count maintenance reports, closing accounts, resolving account
problems, and responding to account information requests); August
23, 1988 Interpretive Letter (provision of software systems and ap¬
plications that permit financial institutions to more efficiently control
and secure funds transfer volumes and complexities, sort and
process exception transactions, research customer account infor¬
mation, item processing, perform record-keeping and tracking re¬
quired by the Federal Reserve Board's Regulation J, prepare
professional customer advices, cash letters, account charges, fees,
general ledger transactions and branch reporting required by return
item processing.)
2The plaintiffs in Marine Midland argued that the machines were
branches because they were engaged in branching functions within
the meaning of section 36(f) (defining "branch" for purposes of the
McFadden Act as “. . . any branch place of business. . at which
deposits are received, or checks paid, or money lent"). In arguing
that the machines were not "branches," Marine Midland contended
that it did not “establish and operate" the machines within the
meaning of section 36(c); rather, that Wegmans did Id. at 459. The
court responded:
We do not believe that the issue can be resolved for either side
so simply. The meaning of the phrase 'establish and operate’ is
affected by the ambiguity of the definition of its object 'branch.'
More fundamentally, Congress in 1927 could not possibly have
foreseen the current revolution in banking practices. The Mc¬
Fadden Act pre-dated the invention of computers as well as their
application of banking through electronic fund transfer systems.
Banking is no longer confined to physical transactions. A rigid
application of the language of 1 927 to the new technology fails
to confront the economic realities facing a court, and leads to
anomalous results.
Id. at 459-460.
In reaching its holding, the court deferred to the OCC's
determination that an ATM machine, a product of tech¬
nology unforeseen at the time of the passage of the
McFadden Act in 1 927, which was not owned or rented
by a national bank, would not be considered to be a
branch of that bank.3 Id. at 461 . The court stated:
Fashioning policies in response to events that
were unforeseeable when the legislation was writ¬
ten is one of the primary functions of executive
agencies. . . . Here, as best we can tell, the
agency's interpretation in fact appears to promote
the purposes of the McFadden Act.
Likewise, although your proposal is a response to
events which were unforeseeable in 1 927, it appears to
promote the purposes of the McFadden Act by foster¬
ing competitive equality between national banks and
state banks in Illinois. The advent of the computer, the
development of data processing capabilities, and the
further development of instantaneous methods of com¬
munication have, as with CBCT machines, given banks
the capability to provide such accommodation ser¬
vices. Moreover, the desire of national banks in Illinois
to engage in such activities is in large measure trig¬
gered by recent changes in Illinois law permitting state
banks to take advantage of these technological
developments to provide facility banking services
through affiliated banks without considering such ser¬
vice banks to be branches of the customer bank. These
changes, too, and their impact on competitive equality,
as provided for by the McFadden Act, were unforesee¬
able at the time of the passage of the Act. See First
National Bank of Plant City, 396 U.S. 1 22 (1969).
Moreover, the Marine Midland court emphasized that
the lines between what constitutes branching and what
does not had become totally blurred due to the
development of technology. The court, for instance,
found it difficult to distinguish between an ATM and a
supermarket verifying an account balance and cashing
a check.4
The court also recognized that the supermarket, not the bank,
retained discretion with regard to who used the facility and controlled
and serviced the facility. The court also noted that customers did not
view the machine as belonging to the bank Marine Midland at 462
4The court stated:
We see no way neatly to categorize all of the various modem
ways of accomplishing banking transactions so that it will be
clear or logically distinct which ones constitute branch banking
within the meaning of 12 U.S.C. 36(f) and which ones do not If
Wegmans' supermarket cashes a check and at the same time
telephones the bank to guard against insufficiency of funds in
the customer's account, apparently there is no branch if the
same functions are instantly performed by an automated teller,
plaintiffs claim that there is a branch Furthermore, the ATM
networks at issue here are not even the current edge of the new
technology The wave of the future includes point-of-sale ter¬
minals and home computer banking
79
Thus, under the logic of either Marine Midland , pertain¬
ing to unforeseeable events, or based on an analogy to
the post office in Smith, the courts have held that an
entity which is not established by a national bank is not
to be considered a branch of the national bank. See
also April 23, 1992, No Objection Letter in which OCC
legal staff indicated that it had no objection to the use
by a national bank and its customers of a third party
messenger service to physically deliver between the
parties items in connection with deposits and
withdrawals. This conclusion was based on the
similarity between the operations of the post office on
the basis of the facts which were presented by the bank
making the request. We are satisfied, given the totality
of the facts and circumstances set forth in the current
proposal, that the service bank should not be con¬
sidered as being "established" by the customer bank.
Moreover, a conclusion that, under the facts presented
above, the service banks are not branches of the cus¬
tomer bank does not impair the supervisory process.
Such institutions already are subject to regulation, over¬
sight, and supervision by the OCC and other federal
financial institutions regulatory agencies to assure
compliance with law and safe and sound banking
practices. The OCC and the other agencies will con¬
tinue to be fully able to monitor and review such
activities in the context of their ongoing examination
process to assure that the services present no super¬
visory concerns.
Consequently, based on the facts presented to us, and
our analysis of the Smith and Marine Midland decisions,
OCC staff would interpose no objection to the proposal .
This letter may not be construed as approving any
proposal for the provision of accommodation services
under facts or circumstances which differ in any
respect from those set forth above.
William P. Bowden, Jr.
Chief Counsel
ir ★ ★
Id at 459-460 See also id at 460-463 (noting that Congress had
failed to define the permissible scope of national bank participation
m electronic funds transfer systems despite numerous suggestions
that it do so and noting that Congress, not the courts, should, if
deemed advisable, act to stop the momentum towards interstate
electronic banking)
Trust Interpretations
271 — September 10, 1992
This letter responds to your May 21,1 992, and July 20,
1992, letters regarding the filing of the fund plan under
1 2 CFR 9. 1 8(b)(1). The fund plan was originally filed on
May 21, 1992, with the Office of the Comptroller of the
Currency (OCC). On June 23 1992, the bank met with
Dean Miller, William Granovsky, and Carolyn Amundson
and discussed liquidity and valuation concerns regard¬
ing the fund (meeting). At the meeting, we requested
that the bank inform the OCC of the bank’s policies,
procedures, and methods for determining the fair value
of the guaranteed investment contracts (GICs), bank
investment contracts (BICs), synthetic investment con¬
tracts (SICs), and other investments (other invest¬
ments) in which the fund plans to invest. The bank
provided a response in a July 20, 1992, letter
(response) which included an analysis from *** ***
(bank's accounting firm), an accounting firm engaged
by the bank to evaluate accounting principles ap¬
plicable to the fund, indicating that current account
practices may allow the bank to value GICs, BICs, SICs,
and other investments at contract value (cost plus
accrued interest).
The valuation method proposed by the bank to be used
by the fund in valuing GICs, BICs, SICs, and other
investments (collectively, fund investments) fails to
satisfy OCC regulations and may harm current and
future fund participants. Further, the OCC perceives
that the bank's valuation method for the fund may result
in possible violations of the fiduciary standards of the
Employee Retirement Income Security Act of 1974
(ERISA). As Congress has conferred ERISA enforce¬
ment upon the Department of Labor (DOL), the OCC
has referred the valuation issue to DOL.
Collective Investment Funds
Twelve CFR 9.18 regulates collective investment funds
(CIFs) administered by national banks as fiduciaries.
Under 1 2 CFR 9. 1 8(a)(2), funds held by a national bank
as fiduciary may be invested collectively in funds con¬
sisting solely of assets of retirement, pension, profit
sharing, stock bonus, or other trusts which are exempt
from federal income taxation under the Internal
Revenue Code. The fund is a CIF authorized by 12 CFR
9.18(a)(2). These CIFs may decide to invest in, among
other things, investment contracts such as GICs, BICs,
and SICs (collectively, investment contracts) as per¬
mitted under law. An investment contract in this case
refers to a negotiated contract between the issuer and
an investor, e g., a pension plan or trustee of a fund,
80
which provides for a specified return on principal in¬
vested over a specified period.
Under 12 CFR 9.18(b)(1) and (4), banks administering
CIFs must determine the value of the assets in each CIF
as of the date set for admissions and withdrawals from
the CIF. At a minimum, banks administering CIFs must
value the assets in the CIF quarterly. In addition, banks
administering CIFs must determine the value of the
assets as often as participants purchase or sell fund
units. If a CIF plan allows participants to purchase or
sell fund units more often than quarterly, the bank
administering the CIF must value the assets in the CIF
as often as participants purchase or sell fund units
under the CIF plan.
Twelve CFR 9.18(b)(1) also requires banks that ad¬
minister CIFs to adopt formalized policies and written
procedures relating to the methodology used to deter¬
mine the value of all fund assets, including investment
contracts. Investment contracts must be valued at
market value or at a fair value determined in good faith
if a market value is not readily ascertainable. See 12
CFR 9. 1 8(b)(1). Because insurance companies, banks,
and other entities issue investment contracts, which
restrict transferability, through negotiated sales with
individual purchasers, there is not currently a secon¬
dary market or exchange for the purchase and sale of
investment contracts. Therefore, investment contracts
do not have a quoted market value, and banks' CIF
managers must make a good faith effort to determine
the fair value of investment contracts in CIFs.
The Fund
The fund plan filed with the OCC indicates that fund
investments will include GICs, BICs, SICs, and other
investments. The fund plan states that other invest¬
ments means any property, including, but not limited to,
governmental, corporate, or personal obligations, vari¬
able amount notes of any obligor, or participations
therein, trust or participation certificates, savings ac¬
counts, bank deposits, certificates of deposit, bonds,
notes, debentures, and repurchase agreements.
The fund plan filed with the OCC and representations at
the meeting indicates that the bank will adopt a formalized
policy and written procedures relating to the methodology
used to determine the value of fund investments. The fund
plan indicates that all fund investments will be valued at
contract value (cost plus accrued interest) unless the
trustee of the fund determines that contract value is not
indicative of fair value. Bank employees at the meeting
indicated that contract value probably would not be in¬
dicative of fair value when the issue has defaulted on
periodic interest payments. The fund plan also states that
property held in connection with SICs and other invest¬
ments, although these underlying securities and other
investments may have a quoted market value, will be
valued at contract value.
The response concludes that the valuation method
outlined in the fund plan satisfies 12 CFR 9.18(b)(1),
because the bank "may reasonably determine that
amortized cost plus accrued interest is an appropriate
measure of fair value for the fund." This conclusion is
founded on an analysis by the bank’s accounting firm,
which is primarily based on (1) the Securities and
Exchange Commission Accounting Series Release No.
1 1 8 (Release) and (2) the American Institute of Certified
Public Accountants Industry Audit Guide, "Audits of
Banks” (Audit Guide).
The Audit Guide states that the valuation of investments
in a CIF at cost would be inconsistent with generally
accepted accounting principles. Audit Guide at 156.
The Audit Guide refers to the Release for determining
a method to value investments in CIFs. The Release
states that all appropriate factors relevant to the value
of securities for which market quotations are not readily
available must be considered to determine the method
of arriving at the fair value of each security in order to
value the securities in good faith. Release at 11. The
Release further states that "[a] as a general principle,
the current 'fair value’ of an issue of securities . . . would
appear to be the amount which the owner might
reasonably expect to receive for them upon their cur¬
rent sale." Id., at 12. The Release then suggests several
factors which should be considered in determining a
valuation method for securities, including (1) the fun¬
damental analytical data relating to the investment, (2)
the nature and duration of restrictions on disposition of
the securities, and (3) an evaluation of the forces which
influence the market in which these securities are pur¬
chased and sold. Id., at 12.
The bank’s accounting firm's analysis of the Audit
Guide and the Release concludes that:
[i]f, after appropriate consideration of the relevant
factors in determining fair value including those
enumerated above, and proper documentation of
such factors and consideration, ***, in good faith,
and in accordance with the procedures de¬
scribed in Description of Transaction, determines
that Contract Value is an appropriate measure of
fair value, we would accept that value for pur¬
poses of preparation of the financial statements
of the Fund in accordance with generally ac¬
cepted accounting principles.
The bank then concludes from the bank's accounting
firm’s conclusion and analysis of the Audit Guide and
the Release that the trustee may value fund investments
81
in the fund at contract value. The bank's conclusion is
accurate only if the fund trustee considers the ap¬
propriate and relevant factors before determining that
the contract value of fund investments approximates
fair value. However the fund plan indicates that fund
investments will be valued automatically at contract
value unless a highly unusual event occurs, such as the
default of bankruptcy of an issuer. Because the method
for valuing "* fund investments stated in the fund plan
does not consider the appropriate and relevant factors
described in the Release before valuing the fund invest¬
ments and may disregard the quoted market value for
securities underlying SICs and for other investments,
the bank’s conclusion does not necessarily follow from
the bank's accounting firm’s conclusion of the analysis
of the Audit Guide and the Release.
The OCC is particularly concerned that fund partici¬
pants would be harmed by the valuation method stated
in the fund plan. Where the fund’s valuation method
results in overstated unit values, participants purchas¬
ing units pay more than their actual value. Conversely,
where the fund’s valuation method results in under¬
stated unit values, the participants redeeming units
receive less than their actual value. Valuation methods
that cause overstated or understated unit values and
adversely affect participants can result in a breach of
the bank's fiduciary duties as trustee of the fund and a
breach of the fiduciary standards of ERISA. In the
present context regarding the bank and its fund, the
valuation issue only affects qualified employee benefit
plans under ERISA and has been referred to DOL.
In addition, because the method for valuing fund invest¬
ments stated in the fund plan does not consider the
appropriate and relevant factors to value the fund in¬
vestments at fair value before assigning values to the
fund investments, the fund plan does not comply with
the valuation provisions of 12 CFR 9.18(b)(1) and (4).
The OCC requests that the bank take immediate steps
to conform its valuation of fund investments with the
requirements of 1 2 CFR 9. 1 8.
Although we referred to the fund plan in consideration
of this matter, it remains the obligation of the bank to
ensure full compliance with 12 CFR Part 9, including
that the provisions of the fund plan comply with the
requirements of 1 2 CFR 9. 1 8(b)( 1 ) and (4). We have not
reviewed the fund plan in its entirety and offer no
opinion as to its conformity with Part 9 except as dis¬
cussed herein.
Dean E Miller
Senior Advisor for Fiduciary Responsibilities
Compliance Management Department
272 — September 22, 1992
This is in reply to your letter of July 24, 1 992, on behalf
of your client, ***. You have requested a private ruling
concerning the applicability of 12 CFR 9. 1 8(b)(9)(ii) to
purchases by common trust funds of collateralized
mortgage obligations (CMOs).
It is the contention of your client that the aforesaid
10 percent limitation should be applied to government
agency issued CMOs by using a “look through" ap¬
proach. Under this approach, CMOs which are col¬
lateralized by a government agency which is backed
by the full faith and credit of the United States of
America would not be subject to the limitation.
As you describe it, this would result in no limitation
being applied to CMOs issued by the Federal National
Mortgage Association (FNMA) when collateralized by
Government National Mortgage Association (GNMA)
obligations, since GNMA obligations are backed by the
full faith and credit of the United States. By contrast, the
limitation would apply as to CMOs issued by either
FNMA or the Federal Home Loan Mortgage Corporation
(FHLMC) when the underlying collateral is issued by
either of those agencies.
The applicable language of the regulation reads as
follows:
(ii) No investment for a collective investment
fund shall be made in stocks, bonds or other
obligations of any one person, firm or corpora¬
tion if as a result of such investment the total
amount invested in stocks, bonds, or other
obligations issued or guaranteed by such per¬
son, firm or corporation would aggregate in
excess of 10 percent of the then market value
of the fund: Provided, That this limitation shall
not apply to investments in direct obligations of
the United States or other obligations fully
guaranteed by the United States as to principal
and interest.
Applying the foregoing language to your proposal, it
would appear that in investing in a CMO which is
collateralized by GNMA obligations, which in turn are
backed by the full faith and credit of the United
States, a bank has not achieved what is required by
the regulation, i.e., an investment in an obligation
which is fully guaranteed by the United States. In¬
stead, it has made an investment in an obligation
which in turn is collateralized by issuances which are
fully guaranteed by the United States. This, to us, is
analogous to the facts in Precedent and Opinion
9.5512. In that opinion, we ruled that an investment
in an investment company which in turn invested only
82
in U.S. Government obligations was not entitled to the
exception to the 10 percent limitation. Forthereasons
stated in that opinion, we believe that we must in this
instance rule that the 10 percent limitation is appli¬
cable.
Dean E. Miller
Senior Advisor
for Fiduciary Responsibilities
Compliance Management Department
★ ★ ★
273 — September 25, 1992
This is in reply to your letter of September 19, 1992,
concerning a bank's ability to purchase securities from
a related brokerage company. You request an opinion
from the OCC that Alabama law authorizes a fiduciary
to purchase securities from a related brokerage com¬
pany as long as the transaction is otherwise fair, pru¬
dent, and reasonable.
We are unable to opine that Section 5-11 A- 1 2 of the
Alabama Code is so broad in scope that it authorizes
affiliated brokerage transactions. On its face, the
statute authorizes purchases of bonds and other
securities in situations when the fiduciary institution has
participated in the underwriting syndicate. It is, at best,
ambiguous whether the legislative intent of the statute
was to reach brokerage self-dealing and conflicts of
interest.
As a means of determining the extent of application of
the statute, we would consider the statute's legislative
history and any judicial decisions interpreting and ap¬
plying the statute. Another means that may be available
to clarify the ambiguity is to request an opinion from the
Attorney General for the State of Alabama.
To the extent that TBC-23, "Policy of the OCC with
Respect to Trust Department Purchase of Securities
Through Affiliated Discount Brokerage Companies,"
(October 4, 1983) permitted affiliated brokerage trans¬
actions on a nonprofit basis, that policy is no longer in
effect. Upon revisiting the question, we have deter¬
mined that sufficient benefit results from the increased
volume of transactions that a conflict of interest is
presented by execution of transactions with a related
broker even on a nonprofit basis. Therefore in the
situation posed, absent statutory authority, no security
transactions may be executed with a related broker firm
unless lawfully authorized by the instrument creating
the relationship, by court order, or through compliance
with the doctrine of consent.
William L. Granovsky
National Bank Examiner
Compliance Management Department
★ ★ ★
83
Mergers — October 1 to December 31 , 1992
Mergers consummated involving two or more operating banks.
Page
Alabama
December 10, 1992:
AmSouth Bank, National Association, Birmingham, Alabama, and
The First National Bank of Birmingham, Birmingham, Alabama
Merger . 89
Colorado
October 30 1992:
Colorado National Bank-Pueblo, Pueblo, Colorado, and
Pueblo Boulevard Bank, Pueblo, Colorado
Merger . 89
December 31, 1992:
Central Bank National Association, Denver, Colorado, and
Central Bank Glenwood Springs, National Association,
Glenwood Springs, Colorado, and
Central Bank North Denver, National Association, Denver,
Colorado, and
Central Bank Chapel Hills, National Association, Colorado
Springs, Colorado
Merger . 89
Florida
October 1, 1992:
Society National Trust Company, Naples, Florida, and
Ameritrust Southeast National Association, Tampa, Florida
Merger . 89
October 16, 1992:
Northern Trust Bank of Florida, National Association, Miami,
Florida, and
Northern Trust Bank of Florida/Sarasota, National Association,
Sarasota, Florida
Merger . 89
November 30, 1992:
Community National Bank, Lake City, Florida, and
Citizens Bank of Live Oak, Live Oak, Florida
Merger . 90
Georgia
December 31, 1992:
The Calhoun First National Bank, Calhoun, Georgia, and
Peoples Bank of Bartow County, Cartersville, Georgia
Merger . 90
Illinois
October 17, 1992:
The First National Bank of Chicago, Chicago, Illinois, and
American National Bank of Lansing, Lansing, Illinois
Merger . 90
November 30, 1992:
Commerce Bank, National Association, Peoria, Illinois, and
AMCORE Bank, National Association, Pekin, Pekin, Illinois
Merger . 90
December 1, 1992:
First National Bank of Blue Island, Blue Island, Illinois, and
First State Bank of Alsip, Alsip, Illinois
Merger . 90
Indiana
October 19, 1992:
Ameritrust National Bank, Michiana, Elkhart, Indiana, and
Ameritrust National Bank, Central Indiana, Indianapolis,
Indiana, and
Ameritrust Bank, Howard County, Kokomo, Indiana, and
Society Bank, Indiana, South Bend, Indiana
Merger . 90
Page
Iowa
October 17, 1992:
The First National Bank of Dubuque, Dubuque, Iowa, and
Andrew Savings Bank, Bellevue, Iowa
Merger . 91
Kansas
October 30, 1992
Bank IV Kansas, National Association, Wichita, Kansas, and
Mission Hills Bank, National Association, Mission Woods,
Kansas
Merger . 91
December 30, 1992:
Bank IV Kansas, National Association, Wichita, Kansas, and
The Peoples National Bank of Liberal, Liberal, Kansas
Merger . 91
Maryland
December 7, 1992:
Garrett National Bank, Oakland, Maryland, and
Liberty Bank of Maryland, Cumberland, Maryland
Merger . 91
December 10, 1992:
Montgomery National Bank, Bethesda, Maryland, and
Prince George’s National Bank, Landover, Maryland
Merger . 91
Massachusetts
November 13, 1992:
Fleet Bank of Massachusetts, National Association, Boston,
Massachusetts, and
Guaranty-First Trust Company, Waltham, Massachusetts
Merger . 91
December 4, 1992:
Fleet Bank of Massachusetts, National Association, Boston,
Massachusetts, and
Heritage Bank for Savings, Holyoke, Massachusetts
Merger . 92
Michigan
October 1 , 1992:
First of America Bank-Southeast Michigan, National
Association, Detroit, Michigan, and
Security Bank of Commerce, Hamtramck, Michigan
Merger . 92
Nebraska
October 19, 1992:
Norwest Bank Nebraska, National Association, Omaha,
Nebraska, and
Vistar Bank, Lincoln, Nebraska, and
Nonwest Bank Nebraska Lincoln, National Association, Lincoln,
Nebraska
Merger . 92
October 24, 1992:
American National Bank of Sarpy County, Papillion, Nebraska,
and
Brentwood Bank, La Vista, Nebraska
Merger . 92
85
Page
Page
New Jersey
October 2, 1992
First Fidelity Bank, National Association, New Jersey, Newark,
New Jersey, and
The Howard Savings Bank, Newark, New Jersey
Merger . 93
November 12, 1992:
First Fidelity Bank, National Association, New Jersey, Newark,
New Jersey, and
First Fidelity Bank, National Association, North Jersey, Totowa,
New Jersey
Merger . 93
North Dakota
November 1 1, 1992:
First Trust Company of North Dakota, National Association,
Fargo, North Dakota, and
Dakota First Trust Co., Fargo, North Dakota
Merger . 93
December 7, 1992:
First Bank of North Dakota, National Association, Fargo, North
Dakota, and
Dakota Bank and Trust Co. of Fargo, Fargo, North Dakota
Merger . 93
Oklahoma
November 1, 1992:
Liberty Bank and Trust Company of Oklahoma City, National
Association, Oklahoma City, Oklahoma, and
Choctaw State Bank, Chactaw, Oklahoma
Merger . 94
November 2, 1992:
Boatmen's First National Bank of Oklahoma, Oklahoma City,
Oklahoma, and
Security Bank, Tulsa, Oklahoma, and
1st Bank of Catoosa, Catoosa, Oklahoma
Merger . 94
December 31, 1992:
Bank IV Oklahoma, National Association, Tulsa, Oklahoma, and
The Fourth National Bank of Tulsa, Tulsa, Oklahoma
Merger . 94
Pennsylvania
October 23, 1992:
CCNB Bank, National Association, Camp Hill, Pennsylvania, and
Parent Federal Savings Bank, Lancaster, Pennsylvania, and
The Gettysburg National Bank, Gettysburg, Pennsylvania
Merger . 94
December 1 1 , 1992:
Mellon Bank, N A , Greensburg, Pennsylvania, and
Meritor Savings Bank, Philadelphia, Pennsylvania
Merger . 94
Rhode Island
December 1 1, 1992:
Fleet National Bank, Providence, Rhode Island, and
Eastland Bank, Woonsocket, Rhode Island, and
Eastland Savings Bank, Woonsocket, Rhode Island
Merger . 94
South Carolina
December 31 , 1992:
First National Bank, Orangeburg, South Carolina, and
Santee Cooper State Bank, Elloree, South Carolina
Merger .
South Dakota
December 4, 1992:
First National Bank, Pierre, South Dakota, and
Security Bank of South Dakota, National Association, Fort
Pierre, South Dakota
Merger . 95
Texas
October 23, 1992:
Security National Bank of San Antonio, San Antonio, Texas, and
Security National Bank East, San Antonio, Texas
Merger . 95
November 30, 1992:
Bank One, Texas, National Association, Dallas, Texas, and
Team Bank, Fort Worth, Texas
Merger . 95
December 31, 1992:
Bank of America Texas, National Association, Houston, Texas,
and
Sequor National Bank Texas, Dallas, Texas
Merger . 95
The First National Bank in Stamford, Stamford, Texas, and
Olton State Bank, Olton, Texas
Merger . 95
The First National Bank of Fabens, Fabens, Texas, and
Bank of Ysleta, El Paso, Texas
Merger . 95
Bank Texas, N.A., Houston, Texas, and
First Bank/Las Colinas, Irving, Texas
Merger . 96
Virginia
December 17, 1992:
Jefferson National Bank, Charlottesville, Virginia, and
The Peoples Bank of Front Royal, Front Royal, Virginia
Merger . 96
West Virginia
October 1 , 1992:
The First National Bank of Parsons, Parsons, West Virginia, and
Bank of Mill Creek, Mill Creek, West Virginia
Merger . 96
October 21, 1992:
United National Bank, Parkersburg, West Virginia, and
Montgomery National Bank, Montgomery, West Virginia
Merger . 96
Wisconsin
November 13, 1992:
Valley Bank, South Central (National Association), Watertown,
Wisconsin, and
Valley First National Bank of Beaver Dam, Beaver Dam,
Wisconsin
Merger . 96
December 4, 1992:
Firstar Bank Princeton, National Association, Princeton,
Wisconsin, and
Firstar Bank Fond du Lac, National Association, Fond du Lac,
Wisconsin
Merger . 96
95
Mergers consummated involving national banks and savings and loan associations.
Page
Page
New Jersey
October 2, 1992:
First Fidelity Bank, National Association, Newark, New Jersey,
and
The Howard Federal Savings, F.A., Berlin, New Jersey
Merger . 97
Ohio
October 31, 1992:
The Farmers Banking Company, National Association,
Lakeview, Ohio, and
Citizens Loan and Building Company, Lima, Ohio
Merger . 97
Pennsylvania
October 23, 1992:
CCNB Bank, National Association, Camp Hill, Pennsylvania, and
Parent Federal Savings Bank, Lancaster, Pennsylvania, and
The Gettysburg National Bank, Gettysburg, Pennsylvania
Merger . 97
November 20, 1992:
Provident National Bank, Philadelphia, Pennsylvania, and
First American Savings, F.A., Jenkintown, Pennsylvania, and
Brandywine Savings Bank, Dowingtown, Pennsylvania
Merger . 97
South Carolina
October 23, 1992:
Southtrust Bank of Charleston, National Association
Charleston, South Carolina, and
Home Federal Savings Bank, Charleston, South CarolinaMerger
97 .
December 21 , 1992:
The National Bank of South Carolina, Sumter, South Carolina, and
First Trident Savings and Loan Corporation, Charleston, South
Carolina
Merger . 97
Wisconsin
September 1 1 , 1992:
First Wisconsin National Bank of Milwaukee, Milwaukee,
Wisconsin, and
Federated Bank, Wauwatosa, Wisconsin
Merger . 98
87
A number of transactions in this section do not have accompanying decisions. In those cases, the OCC
reviewed the competitive effects of the proposals by using its standard procedures for determining whether the
transaction has minimal or no adverse competitive effects. The OCC found the proposals satisfied its criteria for
transactions that clearly had no or minimal adverse competitive effects. In addition, the Attorney General either
filed no report on the proposed transaction or found that the proposal would not have a significantly adverse ef¬
fect on competition.
★ ★ ★
AMSOUTH BANK, NATIONAL ASSOCIATION,
Birmingham, Alabama, and The First National Bank of Birmingham, Birmingham, Alabama
Names of institutions and type of transaction Total assets
AmSouth Bank, National Association, Birmingham, Alabama (3185), with . $8,198,760,000
and The First National Bank of Birmingham, Birmingham, Alabama (17703), with . 43!288!000
merged December 10, 1992, under charter and title of the former. The merged bank at date of merger had . 8,198,919,000
* * *
COLORADO NATIONAL BANK-PUEBLO,
Pueblo, Colorado, and Pueblo Boulevard Bank, Pueblo, Colorado
Names of institutions and type of transaction Total assets
Colorado National Bank-Pueblo, Pueblo, Colorado (1833), with . $204,207,000
and Pueblo Boulevard Bank, Pueblo, Colorado, with . 8^001,000
merged October 30, 1992, under charter and title of the former. The merged bank at date of merger had . 212,248,000
* * *
CENTRAL BANK NATIONAL ASSOCIATION,
Denver, Colorado, and Central Bank Glenwood Springs, National Association, Glenwood Springs, Colorado, and
Central Bank North Denver, National Association, Denver, Colorado, and Central Bank Chapel Hills, National
Association, Colorado Springs, Colorado
Names of institutions and type of transaction Total assets
Central Bank National Association, Denver, Colorado (21860), with . $1,832,244,000
and Central Bank Glenwood Springs, National Association, Glenwood Springs, Colorado (3661), with . 105,946,000
and Central Bank North Denver, National Association, Denver, Colorado (21868), with . 100,194,000
and Central Bank Chapel Hills, National Association, Colorado Springs, Colorado (17637), with . 33,451 ,000
merged December 31 , 1992, under charter 21 860 and title "Central Bank National Association." The merged bank at date of
merger had . . 2,068,808,000
* * *
SOCIETY NATIONAL TRUST COMPANY,
Naples, Florida, and Ameritrust Southeast National Association, Tampa, Florida
Names of institutions and type of transaction Total assets
Society National Trust Company, Naples, Florida (21914), with . $3,219,000
and Ameritrust Southeast National Association, Tampa, Florida (18741), with . 1,916,000
merged October 1, 1992, under charter and title of the former. The merged bank at date of merger had . 5,135,000
* * *
NORTHERN TRUST BANK OF FLORIDA, NATIONAL ASSOCIATION,
Miami, Florida, and Northern Trust Bank of Florida/Sarasota, National Association, Sarasota, Florida
Names of institutions and type of transaction Total assets
Northern Trust Bank of Florida, National Association, Miami, Florida (17487), with . $940,917,000
and Northern Trust Bank of Florida/Sarasota, National Association, Sarasota, Florida (16652), with . 189,999,000
merged October 16, 1992, under charter and title of the former The merged bank at date of merger had . 1 ,130,916.000
* * *
Real mergers include the merger, consolidation, or purchase and assumption of operating banks or savings and loan associations or
branches of operating banks or savings and loan associations, where the resultant bank is a national bank
89
COMMUNITY NATIONAL BANK,
Lake City, Florida, and Citizens Bank of Live Oak, Live Oak, Florida
Names of institutions and type of transaction Total assets
Community National Bank, Lake City, Florida (20496), with . $47,848,000
and Citizens Bank of Live Oak, Live Oak, Florida, with . 28,154,000
merged November 30, 1992, under charter and title of the former. The merged bank at date of merger had . 77 895, 000
* * *
THE CALHOUN FIRST NATIONAL BANK,
Calhoun, Georgia, and Peoples Bank of Bartow County, Cartersville, Georgia
Names of institutions and type of transaction Total assets
The Calhoun First National Bank, Calhoun, Georgia (7549), with . $120,191,000
and Peoples Bank of Bartow County, Cartersville, Georgia, with . 55,345,000
merged December 31 , 1992, under charter 7549 and title "First National Bank of Northwest Georgia." The merged bank at date
of merger had . 170,437,000
* * *
THE FIRST NATIONAL BANK OF CHICAGO,
Chicago. Illinois, and American National Bank of Lansing, Lansing, Illinois
Names of institutions and type of transaction Total assets
The First National Bank of Chicago, Chicago, Illinois (8), with . $32,130,634,000
and American National Bank of Lansing, Lansing, Illinois (21447), with . 162,364,000
merged October 1 7 1 992, under charter and title of the former. The merged bank at date of merger had . 32,292,998,000
* * *
COMMERCE BANK, NATIONAL ASSOCIATION,
Peoria, Illinois, and AMCORE Bank, National Association, Pekin, Pekin, Illinois
Names of institutions and type of transaction Total assets
Commerce Bank, National Association, Peoria, Illinois (176), with . $309,633,000
and AMCORE Bank, National Association, Pekin, Pekin, Illinois (3770), with . 91,783,000
merged November 30, 1 992, under charter and title of the former. The merged bank at date of merger had . 394,757,000
* * *
FIRST NATIONAL BANK OF BLUE ISLAND,
Blue Island, Illinois, and First State Bank of Alsip, Alsip, Illinois
Names of institutions and type of transaction Total assets
First National Bank of Blue Island, Blue Island, Illinois (12779), with . $225,000,000
and First State Bank of Alsip, Alsip, Illinois, with . 25,000,000
merged December 1 , 1992, under charter and title of the former. The merged bank at date of merger had . 250,000,000
AAA
AMERITRUST NATIONAL BANK, MICHIANA,
Elkhart, Indiana, and Ameritrust National Bank, Central Indiana, Indianapolis, Indiana, and Ameritrust Bank,
Howard County, Kokomo, Indiana, and Society Bank, Indiana, South Bend, Indiana
Names of institutions and type of transaction Total assets
Ameritrust National Bank, Michiana, Elkhart, Indiana (206), with . $929,306,000
and Ameritrust National Bank, Central Indiana, Indianapolis, Indiana (16018), with . 870,296,000
and Ameritrust Bank, Howard County. Kokomo, Indiana, with . 364,215,000
and Society Bank, Indiana, South Bend, Indiana, with . 990,682,000
merged October 19, 1992, under charter 206 and title “Society National Bank, Indiana." The merged bank at date of merger
had .
3,156,107,000
THE FIRST NATIONAL BANK OF DUBUQUE,
Dubuque, Iowa, and Andrew Savings Bank, Bellevue, Iowa
Names of institutions and type of transaction Total assets
The First National Bank of Dubuque, Dubuque, Iowa (317), with . $283,069,000
and Andrew Savings Bank, Bellevue, Iowa, with . 31^207,000
merged October 17, 1992, under charter and title of the former. The merged bank at date of merger had . 314,650,000
BANK IV KANSAS, NATIONAL ASSOCIATION,
Wichita, Kansas, and Mission Hills Bank, National Association, Mission Woods, Kansas
Names of institutions and type of transaction Total assets
Bank IV Kansas, National Association, Wichita, Kansas (12490), with . $4,218,270,000
and Mission Hills Bank, National Association, Mission Woods, Kansas (18247), with . 83,455,000
merged October 30, 1992, under charter and title of the former. The merged bank at date of merger had . 4,461 ,657,000
BANK IV KANSAS, NATIONAL ASSOCIATION,
Wichita, Kansas, and The Peoples National Bank of Liberal, Liberal, Kansas
Names of institutions and type of transaction Total assets
Bank IV Kansas, National Association, Wichita, Kansas (12490), with . $4,409,764,000
and The Peoples National Bank of Liberal, Liberal, Kansas (13406), with . 122,227,000
merged December 30, 1992, under charter and title of the former. The merged bank at date of merger had . 4,496,978,000
GARRETT NATIONAL BANK,
Oakland, Maryland, and Liberty Bank of Maryland, Cumberland, Maryland
Names of institutions and type of transaction Total assets
Garrett National Bank, Oakland, Maryland (13776), with . $156,265,000
and Liberty Bank of Maryland, Cumberland, Maryland, with . 173,271,000
merged December 7, 1992, under charter 13776 and title "American Trust Bank, N.A." The merged bank at date of merger had 329,536,000
MONTGOMERY NATIONAL BANK,
Bethesda, Maryland, and Prince George’s National Bank, Landover, Maryland
Names of institutions and type of transaction Total assets
Montgomery National Bank, Bethesda, Maryland (21312), with . $69,662,000
and Prince George’s National Bank, Landover, Maryland (18770), with . 23,635,000
merged December 10, 1992, under charter 21312 and title "Allegiance Bank, National Association. The merged bank at date of
merger had . . 93,298,000
FLEET BANK OF MASSACHUSETTS, NATIONAL ASSOCIATION,
Boston, Massachusetts, and Guaranty-First Trust Company, Waltham, Massachusetts
Names of institutions and type of transaction Total assets
Fleet Bank of Massachusetts, National Association, Boston, Massachusetts ( 1 8677), with . $7,1 02,752,000
and Guaranty-First Trust Company, Waltham, Massachusetts, with . —
merged November 13, 1992, under charter and title of the former. The merged bank at date of merger had
* A *
91
FLEET BANK OF MASSACHUSETTS, NATIONAL ASSOCIATION,
Boston, Massachusetts, and Heritage Bank for Savings, Holyoke, Massachusetts
Names of institutions and type of transaction Total assets
Fleet Bank of Massachusetts, National Association, Boston, Massachusetts (18677), with . $7,102,752,000
and Hentage Bank for Savings, Holyoke, Massachusetts, with . —
merged December 4, 1992, under charter and title of the former. The merged bank at date of merger had
* * *
FIRST OF AMERICA BANK-SOUTHEAST MICHIGAN, NATIONAL ASSOCIATION,
Detroit, Michigan, and Security Bank of Commerce, Hamtramck, Michigan
Names of institutions and type of transaction
Total assets
First of America Bank-Southeast Michigan, National Association, Detroit, Michigan (14925), with .
and Security Bank of Commerce, Hamtramck, Michigan, with .
merged October 1 , 1 992, under charter and title of the former. The merged bank at date of merger had .
$3,246,222,000
574,201,000
3,821,414,000
* * *
NORWEST BANK NEBRASKA, NATIONAL ASSOCIATION,
Omaha, Nebraska, and Vistar Bank, Lincoln, Nebraska, and Norwest Bank Nebraska Lincoln, National
Association, Lincoln, Nebraska
Names of institutions and type of transaction
Total assets
Norwest Bank Nebraska, National Association, Omaha, Nebraska (2978), with .
and Vistar Bank, Lincoln, Nebraska, with .
and Norwest Bank Nebraska Lincoln, National Association, Lincoln, Nebraska (21726), with .
merged October 19, 1992, under charter 2978 and title "Norwest Bank Nebraska, National Association.” The merged bank at
date of merger had .
$1,891,935,000
176,754,000
31,142,000
2,099,831,000
* * *
AMERICAN NATIONAL BANK OF SARPY COUNTY,
Papillion, Nebraska, and Brentwood Bank, La Vista, Nebraska
Names of institutions and type of transaction Total assets
American National Bank of Sarpy County, Papillion, Nebraska (18765), with . $27,320,000
and Brentwood Bank, La Vista, Nebraska, with . 17,450,000
merged October 24, 1992, under charter and title of the former. The merged bank at date of merger had . 45,170,000
COMPTROLLER'S DECISION
On March 2, 1992, application was made to the Of¬
fice of the Comptroller of the Currency (OCC) for prior
authorization for American National Bank of Sarpy
County, Papillion, Nebraska, (American) to purchase
certain assets and assume certain liabilities of
Brentwood Bank, LaVista, Nebraska (Brentwood). The
application is based on an agreement entered into by
the proponents on January 1 4, 1 992.
As of December 1, 1991, American held total deposits
of $25 million and operated two offices. As of the same
date, Brentwood held total deposits of $16 million.
American is wholly owned by American National Cor¬
poration. Brentwood, which will go into voluntary liqui¬
dation following consummation of this transaction, is
wholly owned by First Financial Savings Corporation.
The OCC has reviewed the competitive effects of this
proposal by using its standard procedures for deter¬
mining whether a purchase of assets and assumption
of liabilities clearly has minimal or no adverse com¬
petitive effects. The OCC finds that the proposal
satisfies its criteria for a purchase of assets and as¬
sumption of liabilities that clearly has minimal or no
adverse competitive effects.
The Bank Merger Act requires the OCC to consider
". . . the financial and managerial resources and fu¬
ture prospects of the existing and proposed institu¬
tions, and the convenience and needs of the
communities to be served." We find that the financial
and managerial resources of both banks do not raise
concerns that would cause the application to be
denied. The future prospects for the resulting bank
are favorable, as are the effects of the proposal on
the convenience and needs of the general public to
be served.
A review of the record of this application and other
information available to the OCC as a result of its
92
regulatory responsibilities has revealed no evidence that
the applicants' record of helping to meet the credit
needs of their communities, including low- and mod¬
erate-income neighborhoods, is less than satisfactory.
We have analyzed this proposal pursuant to the Bank
Merger Act (12 U.S.C. 1828(c)) and find that it will not sig¬
nificantly lessen competition in the relevant market. Other
factors considered in evaluating this proposal are satis¬
factory. Accordingly, the application is approved.
SUMMARY OF REPORT BY ATTORNEY GENERAL
This is in response to your letter of May 12, 1992, re¬
questing a report pursuant to section 18(c) of the
Federal Deposit Insurance Act on the competitive fac¬
tors involved in the proposed purchase of the assets
and assumption of the liabilities of the Brentwood
Bank, LaVista, Nebraska, by American National Bank
of Sarpy County, Papillion, Nebraska.
We have reviewed this proposed transaction and con¬
clude that it would not have a significantly adverse ef¬
fect on competition.
★ ★ *
FIRST FIDELITY BANK, NATIONAL ASSOCIATION, NEW JERSEY,
Newark, New Jersey, and The Howard Savings Bank, Newark, New Jersey
Names of institutions and type of transaction Total assets
First Fidelity Bank, National Association, New Jersey, Newark, New Jersey (1452), with . $13,738 512 000
and The Howard Savings Bank, Newark, New Jersey, with . ’ ’ ’ _
merged October 2, 1992, under charter and title of the former. The merged bank at date of merger had
* * *
FIRST FIDELITY BANK, NATIONAL ASSOCIATION, NEW JERSEY,
Newark, New Jersey, and First Fidelity Bank, National Association, North Jersey, Totowa, New Jersey
Names of institutions and type of transaction Total assets
First Fidelity Bank, National Association, New Jersey, Newark, New Jersey (1452), with . $14,231,500,000
and First Fidelity Bank, National Association, North Jersey, Totowa, New Jersey (12990), with . 2^566, 258^000
merged November 12, 1992, under charter and title of the former. The merged bank at date of merger had . 16,829,564,000
* * *
FIRST TRUST COMPANY OF NORTH DAKOTA, NATIONAL ASSOCIATION,
Fargo, North Dakota, and Dakota First Trust Co., Fargo, North Dakota
Names of institutions and type of transaction Total assets
First Trust Company of North Dakota, National Association, Fargo, North Dakota (22055), with . $4 656 000
and Dakota First Trust Co., Fargo, North Dakota, with . 954^000
merged November 11,1 992, under charter and title of the former. The merged bank at date of merger had . 5,61 0,000
FIRST BANK OF NORTH DAKOTA, NATIONAL ASSOCIATION,
Fargo, North Dakota, and Dakota Bank and Trust Co. of Fargo, Fargo, North Dakota
Names of institutions and type of transaction Total assets
First Bank of North Dakota, National Association, Fargo, North Dakota (13323), with . $673 794 000
and Dakota Bank and Trust Co. of Fargo, Fargo, North Dakota, with . 165^555 000
merged December 7, 1992, under charter and title of the former. The merged bank at date of merger had . 839,349 000
93
LIBERTY BANK AND TRUST COMPANY OF OKLAHOMA CITY, NATIONAL ASSOCIATION,
Oklahoma City, Oklahoma, and Choctaw State Bank, Choctaw, Oklahoma
Names of institutions and type of transaction Total assets
Liberty Bank and Trust Company of Oklahoma City, National Association, Oklahoma City, Oklahoma (11230), with . $1,433,167,000
and Choctaw State Bank. Choctaw, Oklahoma, with . 30,839,000
merged November 1, 1992, under charter and title of the former. The merged bank at date of merger had . 1 ,462,259,000
* * *
BOATMEN’S FIRST NATIONAL BANK OF OKLAHOMA,
Oklahoma City, Oklahoma, and Security Bank, Tulsa, Oklahoma, and 1st Bank of Catoosa, Catoosa, Oklahoma
Names of institutions and type of transaction Total assets
Boatmen's First National Bank of Oklahoma, Oklahoma City, Oklahoma (21296), with . $1,172,418,000
and Security Bank, Tulsa, Oklahoma, with . 171,871,000
and 1st Bank of Catoosa, Catoosa, Oklahoma, with . 72,609,000
merged November 2, 1992, under charter 21296 and title "Boatmen's First National Bank of Oklahoma." The merged bank at
date of merger had . 1,415,744,000
* * *
BANK IV OKLAHOMA, NATIONAL ASSOCIATION,
Tulsa, Oklahoma, and The Fourth National Bank of Tulsa, Tulsa, Oklahoma
Names of institutions and type of transaction Total assets
Bank IV Oklahoma, National Association, Tulsa, Oklahoma (18308), with . $451,506,000
and The Fourth National Bank of Tulsa, Tulsa, Oklahoma (13480), with . 343,899,000
merged December 31 , 1992, under charter and title of the former. The merged bank at date of merger had . 799,397,000
* * *
CCNB BANK, NATIONAL ASSOCIATION,
Camp Hill, Pennsylvania, and Parent Federal Savings Bank, Lancaster, Pennsylvania, and The Gettysburg
National Bank, Gettysburg, Pennsylvania
Names of institutions and type of transaction Total assets
CCNB Bank, National Association, Camp Hill, Pennsylvania (14542), with . $767,915,000
and Parent Savings Bank, Lancaster, Pennsylvania, with . 76,921,000
and The Gettysburg National Bank, Gettysburg, Pennsylvania (611), with . 316,098,000
merged October 23, 1992, under charter 14542 and title “CCNB Bank, National Association.” The merged bank at date of
merger had . 1,169,234,000
MELLON BANK, N.A.,
Greensburg, Pennsylvania, and Meritor Savings Bank, Philadelphia, Pennsylvania
Names of institutions and type of transaction Total assets
Mellon Bank, N.A , Greensburg, Pennsylvania (6301), with . $27,831,344,000
and Meritor Savings Bank, Philadelphia, Pennsylvania, with . —
merged December 1 1 , 1992, under charter and title of the former. The merged bank at date of merger had . —
* * *
FLEET NATIONAL BANK,
Providence, Rhode Island, and Eastland Bank, Woonsocket, Rhode Island, and Eastland Savings Bank,
Woonsocket, Rhode Island
Names of institutions and type of transaction Total assets
Fleet National Bank, Providence, Rhode Island (1302), with . $8,058,565,000
and Eastland Bank, Woonsocket, Rhode Island, with . —
and Eastland Savings Bank, Woonsocket, Rhode Island, with . —
merged December 1 1 , 1992, under charter 1302 and title “Fleet National Bank." The merged bank at date of merger had .
94
FIRST NATIONAL BANK,
Orangeburg, South Carolina, and Santee Cooper State Bank, Elloree, South Carolina
Names of institutions and type of transaction Total assets
First National Bank, Orangeburg, South Carolina (13918), with . $291,239,000
and Santee Cooper State Bank, Elloree, South Carolina, with . 39,631 ,000
merged December 31,1 992, under charter and title of the former. The merged bank at date of merger had . 330,870,000
* * *
FIRST NATIONAL BANK,
Pierre, South Dakota, and Security Bank of South Dakota, National Association, Fort Pierre, South Dakota
Names of institutions and type of transaction Total assets
First National Bank, Pierre, South Dakota (14252), with . $76,916,000
and Security Bank of South Dakota, National Association, Fort Pierre, South Dakota (9587), with . 18,124,000
merged December 4, 1992, under charter and title of the former. The merged bank at date of merger had . 90,654,000
* * *
SECURITY NATIONAL BANK OF SAN ANTONIO,
San Antonio, Texas, and Security National Bank East, San Antonio, Texas
Names of institutions and type of transaction Total assets
Security National Bank of San Antonio, San Antonio, Texas (15136), with . $1 12,000,000
and Security National Bank East, San Antonio, Texas (20431), with . 25,000,000
merged October 23, 1 992, under charter and title of the former. The merged bank at date of merger had . 1 37,000,000
* * *
BANK ONE, TEXAS, NATIONAL ASSOCIATION,
Dallas, Texas, and Team Bank, Fort Worth, Texas
Names of institutions and type of transaction Total assets
Bank One, Texas, National Association, Dallas, Texas (21969), with . $13,752,942,000
and Team Bank, Fort Worth, Texas, with . 5,415'o88|ooo
merged November 30, 1992, under charter and title of the former. The merged bank at date of merger had . 1 9, 1 68,030,000
* * *
BANK OF AMERICA TEXAS, NATIONAL ASSOCIATION,
Houston, Texas, and Sequor National Bank Texas, Dallas, Texas
Names of institutions and type of transaction Total assets
Bank of America Texas, National Association, Houston, Texas (22429), with . $4,412,962,000
and Sequor National Bank Texas, Dallas, Texas (22036), with . 11 ,692^000
merged December 31 , 1 992, under charter and title of the former. The merged bank at date of merger had . 4,424,654,000
* * *
THE FIRST NATIONAL BANK IN STAMFORD,
Stamford, Texas, and Olton State Bank, Olton, Texas
Names of institutions and type of transaction Total assets
The First National Bank in Stamford, Stamford, Texas (13598), with . $31 ,329,000
and Olton State Bank, Olton, Texas, with . 19^346,000
merged December 31 , 1992, under charter and title of the former. The merged bank at date of merger had . 50,675,000
* * *
THE FIRST NATIONAL BANK OF FABENS,
Fabens, Texas, and Bank of Ysleta, El Paso, Texas
Names of institutions and type of transaction Total assets
The First National Bank of Fabens, Fabens, Texas (11700), with . $44,743,000
and Bank of Ysleta, El Paso, Texas, with . 39,932,000
merged December 31 , 1992, under charter and title of the former. The merged bank at date of merger had . 84,675^000
* * *
95
BANK TEXAS. N.A.,
Houston, Texas, and First Bank/Las Colinas, Irving, Texas
Names of institutions and type of transaction Total assets
Bank Texas, N . A , Houston, Texas (14236), with . $281,815,000
and First Bank/Las Colinas, Irving, Texas, with . 23,631 ,000
merged December 31,1 992, under charter and title of the former. The merged bank at date of merger had . 305,446,000
JEFFERSON NATIONAL BANK,
Charlottesville, Virginia, and The Peoples Bank of Front Royal, Front Royal, Virginia
Names of institutions and type of transaction Total assets
Jefferson National Bank, Charlottesville, Virginia (6031), with . $1,624,522,000
and The Peoples Bank of Front Royal, Front Royal, Virginia, with . 59,088,000
merged December 17, 1992, under charter and title of the former. The merged bank at date of merger had . 1,691,065,000
THE FIRST NATIONAL BANK OF PARSONS,
Parsons, West Virginia, and Bank of Mill Creek, Mill Creek, West Virginia
Names of institutions and type of transaction Total assets
The First National Bank of Parsons, Parsons, West Virginia (9610), with . $28,398,000
and Bank of Mill Creek, Mill Creek, West Virginia, with . 35,054,000
merged October 1 , 1992, under charter 9610 and title “Mountain Valley Bank, National Association." The merged bank at date of
merger had . 63,452,000
UNITED NATIONAL BANK,
Parkersburg, West Virginia, and Montgomery National Bank, Montgomery, West Virginia
Names of institutions and type of transaction Total assets
United National Bank, Parkersburg, West Virginia (1427), with . $828,321,000
and Montgomery National Bank, Montgomery, West Virginia (5691), with . 95,176,000
merged October 21,1 992, under charter and title of the former. The merged bank at date of merger had . 923,497,000
VALLEY BANK, SOUTH CENTRAL (NATIONAL ASSOCIATION),
Watertown, Wisconsin, and Valley First National Bank of Beaver Dam, Beaver Dam, Wisconsin
Names of institutions and type of transaction Total assets
Valley Bank, South Central (National Association), Watertown, Wisconsin (14064), with . $75,600,000
and Valley First National Bank of Beaver Dam, Beaver Dam, Wisconsin (7462), with . 80,773,000
merged November 13, 1992, under charter 14064 and title "Valley Bank (National Association).” The merged bank at date of
merger had . 156,374,000
FIRSTAR BANK PRINCETON, NATIONAL ASSOCIATION,
Princeton, Wisconsin, and Firstar Bank Fond du Lac, National Association, Fond du Lac, Wisconsin
Names of institutions and type of transaction Total assets
Firstar Bank Princeton, National Association, Princeton Wisconsin (13904), with . $38,1 17,000
Firstar Bank Fond du Lac, National Association, Fond du Lac, Wisconsin (555), with . 270,605,000
merged December 4, 1992, under charter 13904 and title “Firstar Bank Fond du Lac, National Association." The merged bank
at date of merger had . 310,222,000
96
FIRST FIDELITY BANK, NATIONAL ASSOCIATION,
Newark, New Jersey, and The Howard Federal Savings, F.A., Berlin, New Jersey
Names of institutions and type of transaction Total assets
First Fidelity Bank, National Association, Newark, New Jersey (1452), with . $13,738,512,000
and The Howard Federal Savings, F. A., Berlin, New Jersey, with . —
merged October 2, 1992, under charter and title of the former. The merged bank at date of merger had . —
* * * *
THE FARMERS BANKING COMPANY, NATIONAL ASSOCIATION,
Lakeview, Ohio, and Citizens Loan and Building Company, Lima, Ohio
Names of institutions and type of transaction Total assets
The Farmers Banking Company, National Association, Lakeview, Ohio (18342), with . $90,678,000
and Citizens Loan and Building Company, Lima, Ohio, with . 125,658,000
merged October 31, 1992, under charter 18342 and title “American Community Bank, National Association." The merged bank
at date of merger had . . 216,337,000
* * *
CCNB BANK, NATIONAL ASSOCIATION,
Camp Hill, Pennsylvania, and Parent Federal Savings Bank, Lancaster, Pennsylvania, and The Gettysburg
National Bank, Gettysburg, Pennsylvania
Names of institutions and type of transaction Total assets
CCNB Bank, National Association, Camp Hill, Pennsylvania (14542), with . $767,915,000
and Parent Savings Bank, Lancaster, Pennsylvania, with . 76,921,000
and The Gettysburg National Bank, Gettysburg, Pennsylvania (611), with . 316,098,000
merged October 23, 1992, under charter 14542 and title “CCNB Bank, National Association." The merged bank at date of
merger had . 1 ,169,234,000
* * *
PROVIDENT NATIONAL BANK,
Philadelphia, Pennsylvania, and First American Savings, F.A., Jenkintown, Pennsylvania, and Brandywine
Savings Bank, Dowingtown, Pennsylvania
Names of institutions and type of transaction Total assets
Provident National Bank, Philadelphia, Pennsylvania (15422), with . $7,039,247,000
and First American Savings, F.A., Jenkintown, Pennsylvania, with . 634,131,000
and Brandywine Savings Bank, Dowingtown, Pennsylvania, with . 238,682,000
merged November 20, 1992, under charter 15422 and title "Provident National Bank.” The merged bank at date of merger
had . 7,912,060,000
SOUTHTRUST BANK OF CHARLESTON, NATIONAL ASSOCIATION,
Charleston, South Carolina, and Home Federal Savings Bank, Charleston, South Carolina
Names of institutions and type of transaction Total assets
Southtrust Bank of Charleston, National Association, Charleston, South Carolina (21875), with . $75,865,000
and Home Federal Savings Bank, Charleston, South Carolina, with . 156,691,000
merged October 23, 1992, under charter and title of the former. The merged bank at date of merger had . . 232,556,000
* * *
THE NATIONAL BANK OF SOUTH CAROLINA,
Sumter, South Carolina, and First Trident Savings and Loan Corporation, Charleston, South Carolina _
Names of institutions and type of transaction Total assets
The National Bank of South Carolina, Sumter, South Carolina (10660), with . $600,231 ,000
and First Trident Savings and Loan Corporation, Charleston, South Carolina, with . 79,606,000
merged December 21,1 992, under charter and title of the former. The merged bank at date of merger had 680,428,000
* * *
97
FIRST WISCONSIN NATIONAL BANK OF MILWAUKEE,
Milwaukee, Wisconsin, and Federated Bank, Wauwatosa, Wisconsin
Names of institutions and type of transaction Total assets
First Wisconsin National Bank of Milwaukee, Milwaukee, Wisconsin (64), with . $4,565,455,000
and Federated Bank, Wauwatosa, Wisconsin, with . 435,988,000
merged September 11,1 992, under charter and title of the former. The merged bank at date of merger had . 5,01 1 ,764,000
* * *
9 8
Structure Tables
Page
Changes in the structure of the national banking system, by states, January 1 to December 31,1 992 .... 101
Mergers consummated involving two or more operating banks, January 1 to December 31 , 1 992 . 102
Mergers consummated involving national banks and savings and loan associations, January 1 to
December 31, 1992 . 118
Applications for national bank charters, July 1 to December 31 , 1 992 . 123
Applications for national bank charters, approved and rejected by states, July 1 to December 31 , 1 992 . . 124
New nationai bank charters issued, July 1 to December 31,1 992 . 125
State-chartered banks converted to national banks, July 1 December 31, 1992 . 126
Savings and loan associations converted to national banks, July 1 to December 31, 1992 . 126
National banks converted to state banks, July 1 to December 31,1 992 . 127
National banks merged into state banks, July 1 to December 31, 1992 . 128
National banks liquidated under emergency procedures, July 1 to December 31 , 1 992 . 129
National banks in voluntary liquidation, July 1 to December 31, 1992 . 129
Mergers consummated involving a single operating bank, July 1 to December 31, 1992 . 130
Federal branches and agencies of foreign banks, by states, July 1 to December 31,1 992 . 131
Applications for federal branches of foreign banks, by states, July 1 to December 31, 1992 . 131
Tables provided by the Bank Organization and Structure and the International Banking and Finance departments. Beginning with this issue ,
the year-end structure table will reflect changes to the national banking system on an annual, rather than a semiannual basis. New annual
merger tables involving national banks, other operating banks, and savings and loan associations are also included. For information on
changes to the structure of the national banking system from January 1 to June 30, 1992, see volume 1 1, number 3, pages 107-1 19 of the
Quarterly Journal.
99
Changes in the structure of the national banking system, by states, January 1 to December 31 , 1992
In
operation
Dec., 31,
1991
Organized
and opened
for business
Merged
Voluntary
liquidations
Payouts
12 USC 214
In operation
Dec 31, 1992
Converted to
state banks
Merged with
state banks
Alabama .
53
0
2
0
0
0
0
51
Alaska .
4
0
0
0
0
0
0
4
Arizona .
14
0
0
0
0
0
0
14
Arkansas .
82
1
3
0
0
0
0
80
California .
160
4
4
0
3
0
1
156
Colorado .
216
1
29
0
0
3
0
185
Connecticut .
16
0
0
1
0
0
1
14
Delaware .
17
1
2
0
0
0
0
16
District of Columbia . . .
23
1
3
0
0
0
0
21
Florida .
158
3
9
1
0
1
3
147
Georgia .
74
7
3
0
0
0
0
78
Hawaii .
3
0
0
0
1
0
0
2
Idaho .
7
0
1
0
0
2
0
4
Illinois .
333
1
7
0
0
2
2
323
Indiana .
85
0
5
0
0
0
0
80
Iowa .
100
0
1
0
0
11
0
88
Kansas .
149
0
5
0
0
1
0
143
Kentucky .
86
4
5
0
0
0
0
85
Louisiana .
45
0
1
0
0
1
1
42
Maine .
6
1
0
0
0
0
0
7
Maryland .
27
1
2
0
0
0
0
26
Massachusetts .
25
1
0
0
0
0
1
25
Michigan .
62
0
0
0
0
5
2
55
Minnesota .
150
2
1
0
0
0
3
148
Mississippi .
27
0
0
0
0
0
0
27
Missouri .
85
0
1
1
0
1
3
79
Montana .
38
1
0
0
0
5
1
33
Nebraska .
109
0
1
1
0
0
0
107
Nevada .
7
0
0
0
0
0
0
7
New Hampshire .
12
0
1
0
0
0
1
10
New Jersey .
48
0
1
1
0
0
2
44
New Mexico .
38
0
0
0
0
1
0
37
New York .
90
1
5
1
1
1
2
81
North Carolina .
15
1
0
1
0
0
0
15
North Dakota .
30
1
0
0
0
1
0
30
Ohio .
126
2
6
0
0
0
0
122
Oklahoma .
158
0
5
1
0
3
3
146
Oregon .
8
0
0
0
0
1
0
7
Pennsylvania .
150
0
3
0
0
0
1
146
Rhode Island .
5
0
0
0
0
0
0
5
South Carolina .
29
0
2
0
0
0
0
27
South Dakota .
20
0
1
0
0
0
0
19
Tennessee
45
1
0
0
0
1
1
44
Texas .
586
0
6
1
1
4
9
565
Utah .
7
1
0
0
0
0
0
8
Vermont .
12
0
2
0
0
0
0
10
Virginia .
43
0
0
0
0
1
0
42
Washington .
27
1
1
0
0
2
1
24
West Virginia .
72
0
2
0
0
0
2
68
Wisconsin .
97
0
2
0
0
0
0
95
Wyoming .
29
0
0
0
0
2
0
27
Puerto Rico .
1
1
0
0
0
0
1
1
United States .
3,809
38
122
9
6
49
41
3,620
NOTES: The column “organized and opened for business" includes all state banks converted to national banks, all newly formed national banks
and savings and loan associations converted to national banks. The column entitled “merged" includes all mergers, consolidations and
purchases and assumptions in which an operating national bank was acquired by another national bank Also included in this column
are immediate FDIC-assisted "merger" transactions. The column entitled "voluntary liquidations" includes only straight liquidations of
national banks No liquidations pursuant to a purchase and assumption transaction are included in this total Liquidations resulting from
purchases and assumptions are included in the “merged" columns The column entitled "payouts" includes all failed national banks
where the FDIC is named receiver and no other depository institution is named as receiver The column entitled “merged with state
banks" includes all mergers, consolidations, and purchases and assumptions where the resulting institution is a state-chartered bank
Also included in this column are immediate FDIC-assisted "merger" transactions where the resulting institution is a state-chartered bank
Nationally chartered bridge banks are not included on this table
101
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992
Title and location of banks
Total assets
Alabama
February 14.
Southtrust Bank of Calhoun County, National Association, Anniston, Alabama (3041), with .
and Southtrust Bank of Cleburne County, National Association, Heflin, Alabama (18737), with .
Merged under charter and title of the former The merged bank at date of merger had .
$328,621,000
15,518,000
344,139,000
December 10:
AmSouth Bank, National Association, Birmingham, Alabama (3185), with .
and The First National Bank of Birmingham, Birminghan, Alabama (17703), with .
Merged under charter and title of the former The merged bank at date of merger had .
$8,198,760,000
43,288,000
8,242,048,000
Arizona
February 27:
The Valley National Bank of Arizona, Phoenix, Arizona (14324), with .
and Columbia Bank, Avondale, Arizona, with .
Merged under charter and title of the former The merged bank at date of merger had .
$9,631,944,000
Arkansas
January 1:
Union National Bank of Arkansas, Little Rock, Arkansas (15602), with .
and Union National Bank of Arkansas, Magnolia, Arkansas (21287), with .
Merged under charter and title of the former The merged bank at date of merger had .
$567,542,000
28,159,000
595,659,000
February 1:
Worthen National Bank of Northwest Arkansas, Springdale, Arkansas (18781), with .
and First National Bank of Fayetteville, Fayetteville, Arkansas (7346), with .
Merged under charter and title of the former The merged bank at date of merger had .
$168,158,000
239,762,000
430,920,000
June 26:
First Commercial Bank, National Association, Little Rock, Arkansas (13949), with .
and First Commercial Bank of Lonoke County, England, Arkansas, with .
Merged under charter and title of the former The merged bank at date of merger had .
$1,233,696,000
49,192,000
1,282,888,000
September 24
First Commercial Bank, National Association, Little Rock, Arkansas (13949), with .
and First Exchange Bank of Little Rock, National Association, Little Rock, Arkansas (21691), with .
Merged under charter and title of the former The merged bank at date of merger had .
$1,385,424,000
California
February 28:
Westamerica Bank, National Association, San Rafael, California (1 1282), with .
and John Muir National Bank, Martinez, California (18565), with .
Merged under charter and title of the former The merged bank at date of merger had .
$1,290,395,000
55,819,000
1,346,214,000
April 22:
Bank of America, National Trust and Savings Association, San Francisco, California (13044), with .
and Security Pacific National Bank, Los Angeles, California (2491), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$102,002,000,000
54,020,000,000
157,103,000,000
May 18
Community First National Bank, Pleasanton, California (21446), with .
and The Bank of Pleasanton, Pleasanton, California, with .
Merged under charter and title of the former The merged bank at date of merger had .
$101,563,000
68,370,000
169,933,000
June 12
Marine National Bank, Irvine, California (17052), with .
and American Interstate Bank, Newport Beach, California, with .
Merged under charter and title of the former The merged bank at date of merger had
$87,057,000
August 7
Grange National Bank, Orange, California (1681 1), with .
and The Laguna Bank, National Association, Laguna Beach, California (171 17), with .
Merged under charter and title of the former The merged bank at date of merger had
$162,298,000
10,974,000
173,272,000
102
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
September 18:
American Independent Bank, National Association, Gardena, California (18092), with .
and Burbank National Bank, Burbank, California (1681 1), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$22,032,000
13,292,000
35,324,000
Colorado
January 23:
Affiliated National Bank-Boulder, Boulder, Colorado (14021), with .
and Arapahoe National Bank-Louisville, Louisville, Colorado (15016), with .
and Affiliated National Bank-Lafayette, Lafayette, Colorado (15017), with .
and Affiliated National Bank-Arapahoe, Boulder, Colorado (14920), with .
Merged under charter 14021 and title "Affiliated National Bank-Bolder." The merged bank at date of merger had . .
$366,036,000
36,244,000
34,428,000
86,337,000
523,047,000
February 20:
Affiliated National Bank-Colorado Springs, Colorado Springs, Colorado (2179), with .
and Affiliated National Bank-Austin Bluffs, Colorado Springs, Colorado (17090), with .
and Affiliated National Bank-Manitou Springs, Mamtou Springs, Colorado (22023), with .
and Affiliated National Bank-Pueblo, Pueblo, Colorado (17108), with .
Merged under charter 2179 and title "Affiliated National Bank-Colorado Springs." The merged bank at date of merger
$426,379,000
25,582,000
16,346,000
1 1,515,000
479,824,000
March 12:
Affiliated National Bank-Greeley, Greeley, Colorado (13928), with .
and Affiliated National Bank-South Greeley, Greeley, Colorado (14969), with .
and Affiliated National Bank-West Greeley, Greeley, Colorado (151 19), with .
and Affiliated National Bank-Ault, Ault, Colorado (8167), with .
Merger under charter 13928 and title "Affiliated National Bank-Greeley.” The merged bank at date of merger had . . .
$145,375,000
40,445,000
29,459,000
31,544,000
246,825,000
April 1:
First Interstate Bank of Golden, National Association, Golden, Colorado (14384), with .
and First Interstate Bank of Arvada, National Association, Arvada, Colorado (18535), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$186,024,000
16,091,000
202,062,000
April 27:
United Bank of Northglenn, National Association, Northglenn, Colorado (15203), with .
and United Bank of Westminster, National Association, Westminster, Colorado (21828), with .
Merged under charter and title of the former. The merged bank at date of merger had .
United Bank of Denver, National Association, Denver, Colorado (3269), with .
and United Bank of Skyline, National Association, Denver, Colorado (16102), with .
Merged under charter and title of the former The merged bank at date of merger had .
$81,880,000
21,129,000
103,009,000
$2,430,718,000
44,542,000
2,472,848,000
April 30:
The First National Bank of Wray, Wray, Colorado (8752), with .
and Security National Bank, Holyoke, Colorado (20633), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$66,495,000
13,277,000
79,772,000
May 7:
Affiliated National Bank-Denver, Denver, Colorado (15184), with .
and Affiliated National Bank-Alameda, Lakewood, Colorado (15014), with .
and Affiliated National Bank-Englewood, Englewood, Colorado (9907), with .
and Affiliated National Bank-University Hills, Denver, Colorado (15791), with .
and Affiliated National Bank-Lakeside, Wheat Ridge, Colorado (14862), with .
and Affiliated National Bank-Westminster, Westminster, Colorado (14947), with
and Affiliated National Bank-Littleton, Littleton, Colorado (1 1949), with .
Merged under charter 15184 and title "Affiliated National Bank-Colorado." The merged bank at date of merger had
$172,587,000
65,166,000
180,224,000
257,393,000
162,464,000
149,184,000
118,533,000
1,105,551,000
July 1:
Colorado National Bank, Denver, Colorado (1651), with .
and Colorado National Bank-East, Boulder, Colorado ( 1 7465), with .
Merged under charter and title of the former. The merged bank at date of merger had
$2,372,189,000
21,543,000
2,393,732,000
103
Mergers consummated involving two or more operating banks, January 1 to December 31 , 1992 (continued)
Title and location of banks
Total assets
July 9
Affiliated National Bank-Salida, Salida. Colorado (22021), with .
and Affiliated National Bank-Fruita, Fruita, Colorado (22019), with .
and Affiliated National Bank, Montrose, Montrose, Colorado (22020), with .
and Affiliated National Bank-Center, Center, Colorado (9743), with .
and Affiliated National Bank-Craig, Craig, Colorado (22018), with .
and Affiliated National Bank-Delta, Delta, Colorado (22022), with .
Merged under charter 22021 and title "Affiliated National Bank-West ” The merged bank at date of merger had
Affiliated National Bank-Loveland, Loveland, Colorado (13624), with .
and Affiliated National Bank-Fort Collins, Fort Collins, Colorado (15030), with .
Merged under charter and title of the former The merged bank at date of merger had .
$35,299,000
23,122,000
20,526,000
20,166,000
34,316,000
46,045,000
179,474,000
$193,576,000
44,766,000
238,342,000
October 30:
Colorado National Bank-Pueblo, Pueblo, Colorado (1833), with .
and Pueblo Boulevard Bank, Pueblo, Colorado, with .
Merged under charter and title of the former The merged bank at date of merger had .
$204,207,000
8,001,000
212,248,000
December 31:
Central Bank National Association, Denver, Colorado (21860), with .
and Central Bank Glenwood Springs, National Association, Glenwood Springs, Colorado (3661), with .
and Central Bank, North Denver, National Association, Denver, Colorado (21868), with .
and Central Bank Chapel Hills, National Association, Colorado Springs, Colorado (17637), with .
Merged under charter 21860 and title "Central Bank National Association.” The merged bank at date of merger had .
$1,832,244,000
105,946,000
100,194,000
33,451,000
2,068,808,000
Connecticut
April 9:
The Chase Manhattan Bank of Connecticut, National Association, Bridgeport, Connecticut (22478), with .
and Fairfield County Trust Company, Stamford, Connecticut with .
Merged under charter and title of the former The merged bank at date of merger had .
$2,186,869,000
Delaware
February 21 :
Beneficial National Bank USA, Wilmington, Delaware (22474), with .
and Beneficial National Bank USA, Peapack, New Jersey (22160), with .
Merged under charter and title of the former The merged bank at date of merger had .
$240,000
407,279,000
407,519,000
June 30:
Associates National Bank (Delaware), Wilmington, Delaware (22277), with .
and Associates National Bank, Pleasanton, Delaware (16645), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$138,203,000
25,849,000
164,052,000
District of Columbia
March 26:
Industrial Bank of Washington, Washington, D C. (90012), with .
and Theodore Roosevelt National Bank, Washington, D C. (21647), with .
Merged under charter and title of the former The merged bank at date of merger had .
$165,062,000
April 27
Credit International Bank, National Association, Washington, D C. (21392), with .
and Federal City National Bank, Washington, D C (18599), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$38,675,000
22,040,000
60,715,000
May 1:
Adams National Bank, Washington, D C. (16720), with .
and Metropolitan Bank, National Association, Washington, D C. (16220), with .
Merged under charter and title of the former The merged bank at date of merger had .
$67,466,000
27,090,000
Florida
February 7
Founders National Trust Bank. Ft Myers, Florida (20986), with
and Merchant National Bank, Fort Myers, Florida (21546), with .
Merged under charter and title of the former The merged bank at date of merger had
$24,447,000
104
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
March 1 1:
Chemical Bank & Trust Company of Florida, National Association, Palm Beach, Florida (17323) with
and Chemical Trust Company of Florida, National Association, Boca Raton, Florida (20487) with
Merged under charter and title of the former. The merged bank at date of merger had
$43,580,000
737,000
44,257,000
May 22:
Sun First National Bank of Polk County, Winter Plaven, Florida (16786), with
and Sun Bank/South Central Florida, National Association, Sebring, Florida (8728), with
Merged under charter 16786 and title "Sunbank/Mid Florida, National Association." The merged bank at date of
merger had .
$585,173,000
197,450,000
782,623,000
September 4:
The Citizens and Southern National Bank of Florida, Fort Lauderdale, Florida (14376) with
and NCNB National Bank of Florida, Tampa, Florida (17775), with
and NationsBank Trust Company (Florida), National Association, Fort Myers, Florida (16831) with
Merged under charter 14376 and title “NationsBank of Florida, National Association ” The merged bank at date of
merger had .
$6,710,000,000
13,067,000,000
57,000,000
20,899,000,000
October 1:
Society National Trust Company, Naples, Florida (21914), with ....
and Ameritrust Southeast National Association, Tampa, Florida (18741), with
Merged under charter and title of the former. The merged bank at date of merger had
$3,219,000
1,916,000
5,135,000
October 16:
Northern Trust Bank of Florida, National Association, Miami, Florida ( 1 7487), with
and Northern Trust Bank of Florida/Sarasota, National Association, Sarasota, Florida (16652) with
Merged under charter and title of the former The merged bank at date of merger had
$940,917,000
189,999,000
1,130,916,000
November 30:
Community National Bank, Lake City, Florida (20496), with .
and Citizens Bank of Live Oak, Live Oak, Florida, with .
Merged under charter and title of the former The merged bank at date of merger had
$47,848,000
28,154,000
77,895,000
Georgia
January 10:
First National Bank of Paulding County, Dallas, Georgia (12105), with ...
and The Citizens Bank, Dallas, Georgia, with .
Merged under charter and title of the former. The merged bank at date of merger had
$124,642,000
March 31:
NationsBank of Georgia, National Association, Atlanta, Georgia (13068), with
and NationsBank Trust Company (Georgia), National Association, Atlanta, Georgia (21256), with
and NCNB National Bank, Atlanta, Georgia (14678), with .
Merged under charter 13068 and title "NationsBank of Georgia, National Association.” The merged bank at date of
merger had .
$12,966,000,000
61,000,000
307,000,000
13,312,000,000
May 29:
Southtrust Bank of Atlanta, National Association, Atlanta, Georgia (22520) with
and Southtrust Bank of Georgia, National Association, Atlanta, Georgia (2241 1) with
Merged under charter and title of the former The merged bank at date of merger had
$1,013,813,000
815,841,000
1,829,654,000
June 12:
The First National Bank of Haralson County, Buchanan, Georgia (16567) with
and Commercial Bank, Tallapoosa, Georgia, with
Merged under charter and title of the former The merged bank at date of merger had
$68,518,000
25,619,000
94,137,000
December 31:
The Calhoun First National Bank, Calhoun, Georgia (7549), with .
and Peoples Bank of Bartow County, Cartersville, Georgia, with .
Merged under charter 7549 and title "First National Bank of Northwest Georgia." The merged bank at date of merger
had .
$120,191,000
55,345,000
170,437.000
105
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
Idaho
January 27
First Security Bank of Idaho, National Association, Boise, Idaho (14444), with .
and The First National Bank of North Idaho, Wallace, Idaho (4773), with .
Merged under charter and title of the former The merged bank at date of merger had .
$2,496,831,000
157,142,000
2,653,973,000
April 22:
Security Pacific Bank Idaho, National Association, Coeur d'Alene, Idaho (22398), with .
and Bank of America Idaho, Coeur d'Alene, Idaho, with .
Merged under charter 22398 and title Bank of America Idaho, National Association." The merged bank at date of
merger had .
$349,536,000
152,592,000
515,659,000
Illinois
March 2
Boatmen’s National Bank of Hillsboro, Hillsboro, Illinois (20789), with .
and Boatmen's National Bank of Benld, Benld, Illinois (7728), with .
Merged under charter and title of the former The merged bank at date of merger had .
$75,257,000
45,568,000
120,825,000
March 6
Magna Bank, National Association, Belleville, Illinois (2154), with .
and Landmark Bank of Illinois, Fairview Heights, Illinois, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$883,690,000
210,982,000
1,094,672,000
April 1:
NBD Bank Elgin, National Association, Elgin, Illinois (1365), with .
and The Larkin Bank, Hoffman Estates, Illinois, with .
Merged under charter and title of the former The merged bank at date of merger had .
$510,673,000
125,574,000
636,184,000
April 6:
First National Bank of Evergreen Park, Evergreen Park, Illinois (14618), with .
and Oak Lawn Trust & Savings Bank, Oak Lawn, Illinois, with .
Merged under charter and title of the former The merged bank at date of merger had .
$1,375,011,000
133,976,000
1,495,954,000
April 25:
The First National Bank of Chicago, Chicago, Illinois (8), with .
and First Chicago Bank of Evanston, National Association, Evanston, Illinois (14943), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$34,878,682,000
72,488,000
34,951,143,000
May 29
First National Bank, Mattoon, Illinois, Mattoon, Illinois (10045), with .
and Cumberland County National Bank in Neoga, Neoga, Illinois (13892), with .
and Charleston Community Bank, Charleston, Illinois, with .
and State Bank of Sullivan, Sullivan, Illinois, with .
and The First National Bank and Trust Company of Douglas County, Tuscola, Illinois (17170), with .
Merged under charter 10045 and title "First Mid-Illinois Bank & Trust, National Association." The merged bank at date
of merger had .
$159,771,000
18,417,000
23,611,000
38,927,000
30,224,000
265,235,000
June 1:
NBD Bank Mount Prospect, National Association, Mount Prospect, Illinois (15272), with .
and Countryside Bank. Mount Prospect, Illinois, with .
Merged under charter and title of the former The merged bank at date of merger had .
$388,490,000
118,483,000
506,925,000
June 20:
The First National Bank of Chicago, Chicago, Illinois (8), with .
and First Chicago Bank of Mount Prospect, Mt. Prospect, Illinois, with .
and First Chicago Bank of Oak Park, Oak Park, Illinois, with .
Merged under charter 8 and title The First National Bank of Chicago." The merged bank at date of merger had . .
$32,549,321,000
466,919,000
387,568,000
33,882,449,000
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
July 1:
Title and location of banks
Total assets
Citizens First National Bank, Princeton, Illinois (2413), with .
and Colonial Bank and Trust Company of Bureau County, Princeton, Illinois, with
Merged under charter and title of the former. The merged bank at date of merger had
First of America Bank-Springfield, National Association, Springfield, Illinois (3548), with
and The First National Bank of Petersburg, Petersburg, Illinois (3043), with .
Merged under charter and title of the former. The merged bank at date of merger had
$220,979,000
18,057,000
239,361,000
$579,837,000
50,618,000
630,455,000
July 18:
The First National Bank of Chicago, Chicago, Illinois (8), with .
and First Chicago Bank of Ravenswood, Chicago, Illinois, with .
Merged under charter and title of the former. The merged bank at date of merger had
$32,549,321,000
440,153,000
33,882,449,000
October 17:
The First National Bank of Chicago, Chicago, Illinois (8), with .
and American National Bank of Lansing, Lansing, Illinois (21447), with .
Merged under charter and title of the former. The merged bank at date of merger had
$32,130,634,000
162,364,000
32,292,998,000
November 30:
Commerce Bank, National Association, Peoria, Illinois (176), with .
and Amcore Bank National Association, Pekin, Pekin, Illinois (3770), with
Merged under charter and title of the former The merged bank at date of merger had
December 1:
First National Bank of Blue Island, Blue Island, Illinois (12779), with .
and First State Bank of Alsip, Alsip, Illinois, with .
Merged under charter and title of the former. The merged bank at date of merger had
$309,633,000
91,783,000
394,757,000
$225,000,000
25,000,000
250,000,000
Indiana
January 1:
The American National Bank of Vincennes, Vincennes, Indiana (3864), with
and The Patoka National Bank, Patoka, Indiana (9352), with .
Merged under charter and title of the former. The merged bank at date of merger had
$264,957,000
17,360,000
282,317,000
January 31:
First National Bank of Indiana and Mutual Trust Company, New Albany, Indiana (21723), with .
and Farmers-Citizens Bank, Salem, Indiana, with .
Merged under charter and title of the former The merged bank at date of merger had .
May 1:
First of America Bank-Laporte, National Association, Laporte, Indiana (377), with .
and First of America Bank-Rensselaer, Rensselaer, Indiana, with .
Merged under charter 377 and title "First of America Bank-Northwest Indiana, National Association." The merged
bank at date of merger had .
$155,204,000
121,062,000
274,266,000
$184,744,000
74,761,000
259,505,000
July 24
The Citizens National Bank of Evansville, Evansville, Indiana (2188), with .
and Citizens Bank of Posey County, National Association, Mt. Vernon, Indiana (13542), with .
and Citizens Bank of Gibson County, National Association, Princeton, Indiana (9463), with .
and Citizens Bank of Vincenenes, Vincennes, Indiana, with
Merged under charter 2188 and title "The Citizens National Bank of Evansville." The merged bank at date of merger
had .
$790,409,000
181,395,000
105,986,000
42,371,000
1,1 14,227,000
September 1:
Bank One, Bloomington, National Association, Bloomington Indiana (1888), with
and The Bedford National Bank, Bedford, Indiana (5187), with .
Merged under charter and title of the former The merged bank at date of merger had
$325,602,000
160,302,000
485,904,000
October 19:
Ameritrust National Bank, Michiana, Elkhart, Indiana (206), with .
and Ameritrust National Bank, Central Indiana, Indianapolis, Indiana (16018), with
and Ameritrust Bank, Howard County, Kokomo, Indiana, with
and Society Bank, Indiana, South Bend, Indiana, with .
Merged under charter 206 and title "Society National Bank, Indiana " The merged bank at date of merger had
$929,306,000
870,296,000
364,215,000
990,682,000
3,156.107,000
107
Mergers consummated involving two or more operating banks, January 1 to December 31 , 1992 (continued)
Title and location of banks
Total assets
Iowa
January 1:
Liberty Bank and Trust, National Association, Fonda, Iowa (6550), with .
and Liberty Bank & Trust, Palmer, Iowa, with .
Merged under charter and title of the former The merged bank at date of merger had .
$13,822,000
1 1,367,000
25,189,000
January 19:
Bettendorf Bank, National Association, Bettendorf, Iowa (18462), with .
and Davenport Bank and Trust Company, Davenport, Iowa, with .
Merged under charter 18462 and title "Davenport Bank & Trust Company, National Association.” The merged bank at
date of merger had .
$103,186,000
1,866,015,000
1,962,426,000
March 2:
United National Bank of Iowa, Sidney, Iowa (18059), with .
and American National Bank, Bedford, Iowa (21239), with .
Merged under charter and title of the former The merged bank at date of merger had .
$9,230,000
17,668,000
26,898,000
October 17:
The First National Bank of Dubuque, Dubuque, Iowa with .
and Andrew Savings Bank, Bellevue, Iowa, with .
Merged under charter and title of the former The merged bank at date of merger had .
$283,069,000
31,207,000
314,650,000
Kansas
February 3:
The Farmers National Bank of Oberlin, Oberlm, Kansas (7298), with .
and The Citizens State Bank, Norcatur, Kansas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$46,253,000
11,815,000
57,684,000
February 24
The Citizens National Bank of Greenleaf, Greenleaf, Kansas (10789), with .
and Cloud County Bank & Trust, Condordia, Kansas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$25,340,000
66,098,000
92,157,000
April 1:
First National Bank and Trust, Salina, Kansas (4742), with .
and The First State Bank & Trust Company, Osborne, Kansas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
First National Bank and Trust, Salina, Kansas (4742), with .
and The Thomas County National Bank of Colby, Colby, Kansas (13076), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$294,127,000
17,054,000
309,749,000
$292,541,000
57,016,000
345,268,000
July 31:
Bank IV Kansas, National Association, Wichita, Kansas (12490), with .
and Farmers and Merchants Bank, Colby, Kansas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$4,186,036,000
76,346,000
4,252,760,000
September 9
Bank IV Kansas, National Association, Wichita, Kansas (12490), with .
and Kansas National Bank and Trust Company, Prairie Village, Kansas (15745), with .
Merged under charter and title of the former The merged bank at date of merger had .
September 18
The First National Bank of Lawrence, Lawrence, Kansas (3584), with .
and Lawrence National Bank and Trust Co., Lawrence, Kansas (3849), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$4,252,760,000
100,366,000
4,353,806,000
$155,928,000
54,761,000
216,313,000
October 30
Bank IV Kansas, National Association, Wichita, Kansas (12490), with .
and Mission Hills Bank, National Association, Mission Woods, Kansas (18247), with .
Merged under charter and title of the former The merged bank at date of merger had .
$ 4,218,270,000
83,455,000
4,461,657,000
108
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
December 30, 1992:
Bank IV Kansas, National Association, Wichita, Kansas (12490) with
and The Peoples National Bank of Liberal, Liberal, Kansas (13406), with
Merged under charter and title of the former. The merged bank at date of merger had
$4,409,764,000
122,227,000
4,496,978,000
Kentucky
May 9:
Star Bank, National Association, Kentucky, Covington, Kentucky (718) with
and Kentucky National Bank of Carroll County, Lebanon, Kentucky (21302) with
and Kentucky National Bank of Marion County, Lebanon, Kentucky (2150) with
and Kentucky National Bank of Pendleton County, Falmouth, Kentucky (21303) with
Merged under charter 718 and title "Star Bank National Association, Kentucky,” The merged bank at date of merger
had .
$707,345,000
34,988,000
58,785,000
27,821,000
828,167,000
August 21:
Bank One, Lexington National Association (14840), with
and First Security Bank & Trust Company of Danville, National Association, Danville, Kentucky (3381) with
and First Security Bank & Trust Company of Clark County, Richmond, Kentucky with
and First Security Bank & Trust Company of Madison County, Richmond Kentucky with
and First Security Bank & Trust Company of Lexington, Lexington, Kentucky (906) with
Merged under charter 14840 and title "Bank One, Lexington, National Association." The merged bank at date of
merger had .
$345,627,000
62,208,000
101,682,000
145,603,000
1,200,780,000
1,855,900,000
Louisiana
January 1:
First National Bank of St Martin, St. Martinsville, Louisiana (17927) with
and Citizens National Bank of Breaux Bridge, Breaux Bridge, Louisiana (17765) with
Merged under charter and title of the former The merged bank at date of merger had
$26,909,000
16,500,000
43,169,000
February 1:
First Acadiana National Bank, Opelousas, Louisiana (16200), with
and Bank of Iberia, New Iberia, Louisiana, with .
Merged under charter and title of the former. The merged bank at date of merger had
$162,448,000
26,770,000
189,485,000
Maryland
April 24:
NationsBank of Maryland, National Association, Bethesda, Maryland (22546) with
and NCNB National Bank of Maryland, Baltimore, Maryland (21977) with
Merged under charter and title of the former. The merged bank at date of merger had
$4,132,000,000
323,000,000
4,455,000,000
December 7:
Garrett National Bank, Oakland, Maryland (13776), with .
and Liberty Bank of Maryland, Cumberland, Maryland, with
Merged under charter 13776 and title "American Trust Bank, N.A.” The merged bank at date of merger had
$156,265,000
173,271,000
329,536,000
December 10:
Montgomery National Bank, Bethesda, Maryland (21312), with
and Prince George’s National Bank, Landover, Maryland (18770) with
Merged under charter 21312 at title "Allegiance Bank, National Association.” The merged bank at date of merger had
$69,662,000
23,635,000
93,298,000
Massachusetts
March 6:
The First National Bank of Boston, Boston, Massachusetts (200) with
and New Heritage Bank, Lawrence, Massachusetts, with
Merged under charter and title of the former The merged bank at date of merger had
$26,197,504,000
March 27:
Fleet Bank of Massachusetts, National Association, Boston, Massachusetts (18677), with
and Vanguard Savings Bank, Holyoke, Massachusetts, with .
Merged under charter and title of the former The merged bank at date of merger had .
$7,184,000
412,000
7,596,000
109
Mergers consummated involving two or more operating banks, January 1 to December 31 , 1992 (continued)
Title and location of banks
Total assets
May 29
The First National Bank of Boston, Boston, Massachusetts (200), with .
and Workingmens Cooperative Bank, Boston, Massachusetts, with .
Merged under charter and title of the former. The merged bank at date of merger had
$24,620,128,000
September 26
Shawmut Bank, National Association, Boston, Massachusetts (15509), with .
and The Provident Institution for Savings in the Town of Boston, Boston, Massachusetts, with .
Merged under charter and title of the former The merged bank at date of merger had .
$1 1,166,683,000
1,288,483,000
12,110,377,000
November 13:
Fleet Bank of Massachusetts, National Association Boston, Massachusetts (18677), with .
and Guaranty-First Trust Company, Waltham, Massachusetts, with .
Merged under charter and title of the former The merged bank at date of merger had .
$7,102,752,000
December 4:
Fleet Bank of Massachusetts, National Association, Boston, Massachusetts (18677), with .
and Heritage Bank for Savings, with .
Merged under charter and title of the former The merged bank at date of merger had .
$7,102,752,000
Michigan
June 1:
First of America Bank-Southeast Michigan, National Association, Detroit, Michigan (14925), with .
and Security Bank Northeast, Richmond, Michigan, with .
and Security Bank St. Clair Shores, St. Clair Shores, Michigan, with .
Merged under charter 14925 and title "First American Bank-Southeast Michigan, National Association. ” The merged
bank at date of merger had .
$2,954,666,000
174,140,000
113,791,000
3,821,414,000
October 1:
First of America Bank-Southeast Michigan, National Association, Detroit, Michigan (14925), with .
and Security Bank of Commerce, Hamtramck, Michigan, with .
Merged under charter and title of the former The merged bank at date of merger had .
$3,246,622,000
574,201,000
3,821,414,000
Minnesota
January 24:
The First National Bank of Milaca, Milaca, Minnesota (9050), with .
and Rural American Bank-Isle, Isle, Minnesota, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$45,332,000
16,319,000
60,368,000
January 31:
The American National Bank of Nashwauk, Nashwauk, Minnesota (1 1579), with .
and The First National Bank of Nashwauk, Nashwauk, Minnesota (10736), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$9,822,000
6,924,000
16,375,000
May 29:
The First National Bank of Bagley, Bagley, Minnesota (6813), with .
and Farmers State Bank of Fosston, Fosston, Minnesota, with .
Merged under charter and title of the former The merged bank at date of merger had .
$27,494,000
25,043,000
51,076,000
August 20:
The First National Bank of Parkers Prairie, Parkers Prairie, Minnesota (6661), with .
and First State Bank of Dalton, Dalton, Minnesota, with .
Merged under charter and title of the former The merged bank at date of merger had .
$19,879,000
12,380,000
31,954,000
Mississippi
August 7
Trustmark National Bank, Jackson, Mississippi (10523), with .
and Foxworth Bank, Foxworth, Mississippi, with .
Merged under charter and title of the former The merged bank at date of merger had
$3,899,733,000
110
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
Missouri
May 7
Boatmen's National Bank of Cape Girardeau, Cape Girardeau, Missouri (4611) with
and Jackson Exchange Bank and Trust Company, Jackson Missouri with
Merged under charter and title of the former The merged bank at date of merger had
Commerce Bank of Poplar Bluff, National Association, Poplar Bluff, Missouri (20913) with
and First Exchange Bank of Cape Girardeau, Cape Girardeau, Missouri, with
Merged under charter and title of the former The merged bank at date of merger had
Commerce Bank of St Francois County, National Association, Farmington, Missouri (20917) with
and First Exchange Bank of Madison County, Fredericktown, Missouri, with
Merged under charter and title of the former. The merged bank at date of merger had
$331,506,000
$120,901,000
$87,264,000
June 18:
Mercantile Bank of St. Louis, National Association, St. Louis, Missouri (21684) with
and American Bank of St. Louis, St. Louis, Missouri, with
Merged under charter and title of the former. The merged bank at date of merger had
$4,712,151,000
152,517,000
4,863,687,000
July 31:
First National Bank of Callaway County, Fulton, Missouri (14876) with
and Ozarks National Bank, Lake Ozark, Missouri (18757), with
Merged under charter 14876 and title "Community Bank, National Association.” The merged bank at date of merger
had .
$50,987,000
1 1,961,000
62,948,000
September 1:
Bates County National Bank, Butler, Missouri (17100), with
and First Bank of Butler, Butler Missouri, with . . .
Merged under charter and title of the former The merged bank at date of merger had
$17,073,000
29,320,000
45,774,000
Nebraska
February 29:
Norwest Bank Nebraska, National Association, Omaha, Nebraska (2978), with
and The Community Bank of Nebraska, Omaha, Nebraska, with
Merged under charter and title of the former. The merged bank at date of merger had
$1,799,323,000
6,617,000
1,805,940,000
March 9:
The Beatrice National Bank and Trust Company, Beatrice, Nebraska (3081) with
and Pickrell State Bank, Pickrell, Nebraska, with ... .
Merged under charter and title of the former. The merged bank at date of merger had
$72,260,000
6,582,000
78,842,000
May 1:
First National Bank of Chadron, Chadron, Nebraska (14637), with ... .
and Northwestern State Bank, Hay Springs, Nebraska, with
Merged under charter and title of the former. The merged bank at date of merger had
$39,233,000
24,610,000
64,831,000
July 31:
The First National Bank of Wahoo, Wahoo, Nebraska (2780) with
and Bank of Sterling, Sterling, Nebraska with
and State Bank of Burchard, Burchard, Nebraska with
Merged under charter 2780 and title "First National Bank of Wahoo." The merged bank at date of merger had
$37,828,000
8,664,000
3,853,000
50,301,000
October 19:
Norwest Bank Nebraska, National Association, Omaha, Nebraska (2978) with
and Vistar Bank, Lincoln, Nebraska, with . .
Norwest Bank Nebraska Lincoln, National Association, Lincoln, Nebraska (21726) with
Merged under charter 2978 and title "Norwest Bank Nebraska, National Association." The merged bank at date of
merger had .
$1,891,935,000
176,754,000
31,142,000
2,099,831,000
October 24:
American National Bank of Sarpy County, Papillion, , Nebraska (18765), with
and Brentwood Bank, La Vista, Nebraska, with .
Merged under charter and title of the former. The merged bank at date of merger had
$27,320,000
17,450,000
45,170,000
111
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
New Hampshire
January 31:
The First National Bank of Portsmouth, Portsmouth, New Hampshire (19), with .
and Merchants National Bank, Dover, New Hampshire (5274), with .
Merged under charter and title of the former. The merged bank at date of merger had
$218,165,000
58,913,000
227,077,000
New Jersey
May 22:
Valley National Bank, Passaic, New Jersey (15790), with .
and Powder Mill Bank, Morris Plains, New Jersey, with .
Merged under charter and title of the former The merged bank at date of merger had .
—
September 18:
New Jersey National Bank, Ewing Township, New Jersey (1327), with .
and First Peoples Bank of New Jersey, Haddon Township, New Jersey, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$3,194,252,000
1,074,803,000
4,269,055,000
October 2:
First Fidelity Bank, National Association, New Jersey, Newark, New Jersey (1452), with .
and The Howard Savings Bank, Newark, New Jersey, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$13,738,512,000
November 12:
First Fidelity Bank, National Association, New Jersey, Newark, New Jersey (1452), with .
and First Fidelity Bank, National Association, North Jersey, Totowa, New Jersey (12990), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$14,231,500,000
2,566,258,000
16,829,564,000
New York
January 2:
The St. Lawrence National Bank, Canton, New York (8531 ), with .
and Community National Bank, Addison, New York (5178), with .
and The Nichols National Bank, Nichols, New York (9399), with .
and The Exchange National Bank, Olean, New York (18272), with .
and Horizon Bank, National Association, Waterloo, New York (7840), with .
Merged under charter 8531 and title "Community Bank, National Association." The merged bank at date of merger
had .
$308,020,000
77,434,000
22,004,000
115,930,000
92,533,000
630,233,000
January 27:
The National Bank of Stanford, Stanford, New York (2602), with .
and The National Bank of Roxbury, Roxbury, New York (7678), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$73,413,000
5,307,000
77,887,000
June 12:
First Fidelity Bank, National Association, New York, New York (22558), with .
and American Savings Bank, White Plains, New York with .
Merged under charter and title of the former. The merged bank at date of merger had .
Republic National Bank of New York, New York, New York (15569), with .
and American Savings Bank White Plains, New York, with .
Merged under charter and title of the former. The merged bank bank at date of merger had .
$25,925,888,000
North Dakota
November 1 1:
First Trust Company of North Dakota, National Association, Fargo, North Dakota (22055), with .
and Dakota First Trust Company, Fargo, North Dakota, with .
Merged under charter and title of the former The merged bank at date of merger had .
$4,656,000
954,000
5,610,000
December 7
First Bank of North Dakota, National Association, Fargo, North Dakota (13323), with .
and Dakota Bank and Trust Co of Fargo, Fargo, North Dakota, with .
Merged under charter and title of the former The merged bank at date of merger had .
$673,794,000
165,555,000
839,349,000
112
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
Ohio
January 1:
National City Bank, Akron, Akron, Ohio (17393), with .
and National City Bank, Northeast, Columbiana, Ohio (15694), with
Merged under charter 17393 and title "National City Bank Northeast.” The merged bank at date of merger had
$1,104,900,000
172,000,000
1,276,900,000
February 17:
Society National Bank, Cleveland, Ohio (14761), with .
and Society Bank, National Association, Dayton, Ohio (10), with .
Merged under charter and title of the former The merged bank at date of merger had
$8,328,972,000
2,920,093,000
11,181,935,000
May 23:
Bank One, Cincinnati, National Association, Milford, Ohio (3234), with .
and Bank One, Middletown, Middletown, Ohio, with .
Merged under charter and title of the former The merged bank at date of merger had .
$713,401,000
214,659,000
928,060,000
June 19:
Star Bank, National Association, Cincinnati, Ohio (24), with .
and Star Bank, National Association, Cleveland, Independence, Ohio (21780), with
Merged under charter and title of the former. The merged bank at date of merger had .
$3,878,325,000
79,149,000
3,930,096,000
July 13:
Society National Bank, Cleveland, Ohio (14761), with .
and Ameritrust Company National Association, Cleveland, Ohio (18024), with
Merged under charter and title of the former The merged bank at date of merger had .
$11,054,629,000
8,220,319,000
19,224,948,000
September 1:
The National Bank & Trust Company, Wilmington, Ohio (1997), with .
and Kentucky National Bank of Ohio, Georgetown, Georgetown, Ohio (22705), with
Merged under charter and title of the former. The merged bank at date of merger had .
$181,864,000
34,633,000
216,497,000
September 5:
The Fifth Third Bank of Western Ohio, National Association, Piqua, Ohio (1061), with .
and First Lima National Bank of Lima, Lima, Ohio (22536), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$588,066,000
171,898,000
756,319,000
September 12:
Star Bank, National Association, Tri-State, Ironton, Ohio (16607), with .
and Star Bank, South Central Ohio, Portsmouth, Ohio, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$270,476,000
149,762,000
420,238,000
September 28:
Society National Bank, Cleveland, Ohio (14761), with .
and Ameritrust Development Bank, Cleveland, Ohio, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$18,427,700,000
27,936,000
18,452,000,000
Oklahoma
January 1:
First National Bank and Trust Company, Frederick, Oklahoma (13760), with .
and First National Bank in Hobart, Hobart, Oklahoma (6358), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$71,082,000
63,105,000
134,187,000
March 19:
The Union National Bank of Chandler, Chandler, Oklahoma (6269), with .
and Farmers and Merchants Bank, Tyron, Oklahoma, with
Merged under charter and title of the former. The merged bank at date of merger had
$32,922,000
March 26:
Rockwell Bank, National Association, Oklahoma City, Oklahoma (17091), with
and American Bank of Commerce, Oklahoma City, Oklahoma, with
Merged under charter and title of the former. The merged bank at date of merger had
$23,487,000
113
Mergers consummated involving two or more operating banks, January 1 to December 31 , 1992 (continued)
Title and location of banks
Total assets
May 1:
Boatmen's First National Bank of Oklahoma, Oklahoma City, Oklahoma (21296), with .
and Founders Bank & Trust Company, Oklahoma City, Oklahoma, with .
Merged under charter and title of the former The merged bank at date of merger had
$904,326,000
338,569,000
1,242,011,000
July 1:
First National Bank and Trust Company, Ponca City, Oklahoma (13891), with .
and American National Bank, Ponca City, Oklahoma (18070), with .
Merged under charter and title of the former The merged bank at date of merger had .
$118,000,000
28,000,000
144,000,000
July 16:
Bank of Oklahoma, National Association, Tulsa, Oklahoma (13679), with .
and Bank of Oklahoma, National Association, South, Oklahoma City, Oklahoma (20062), with .
Merged under charter and title of the former The merged bank at date of merger had .
$2,064,155,000
36,1 16,000
2,072,346,000
September 8.
First Fidelity Bank, National Association, Oklahoma City, Oklahoma (17045), with .
and City National Bank & Trust Company, Norman, Oklahoma (12157), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$95,214,000
148,939,000
236,625,000
November 1:
Liberty Bank and Trust Company of Oklahoma City, National Association, Oklahoma City, Oklahoma (11230), with . . .
and Choctaw State Bank, Choctaw, Oklahoma, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$1,433,167,000
30,839,000
1,462,259,000
November 2:
Boatmen's First National Bank of Oklahoma, Oklahoma City, Oklahoma (21296), with .
and Security Bank, Tulsa, Oklahoma, with .
and 1st Bank of Catoosa, Catoosa, Oklahoma, with .
Merged under charter 21296 and title “Boatmen's First National Bank of Oklahoma." The merged bank at date of
merger had .
$1,172,418,000
171,871,000
72,609,000
1,415,744,000
December 31 :
Bank IV Oklahoma, National Association, Tulsa, Oklahoma (18308), with .
and The Fourth National Bank of Tulsa, Tulsa, Oklahoma (13480), with .
Merged under charter and title of the former The merged bank at date of merger had .
$451,506,000
343,899,000
799,397,000
Pennsylvania
January 1:
Mellon Bank, National Association, Greensburg, Pennsylvania (6301), with .
and United Penn Bank, Wilkes-Barre, Pennsylvania, with .
Merged under charter and title of the former The merged bank at date of merger had .
$25,197,000
1,447,000
26,519,000
March 30:
First Eastern Bank, National Association, Wilkes-Barre, Pennsylvania (30), with .
and Peoples First National Bank and Trust Company, Hazleton, Pennsylvania (3893), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$2,438,017,000
365,462,000
2,773,136,000
April 24
The First National Bank of Lake Ariel, Lake Ariel, Pennsylvania (9886), with .
and The Pocono Bank, Milford, Pennsylvania, with .
Merged under charter and title of the former The merged bank at date of merger had .
$103,094,000
19,547,000
121,418,000
September 25
The Citizens National Bank of Lansford, Lansford, Pennsylvania (7051), with .
and Summit Hill Trust Company, Summit Hill, Pennsylvania, with .
Merged under charter and title of the former The merged bank at date of merger had .
$39,944,000
23,201,000
63,145,000
114
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
October 23: *
CCNB Bank, National Association, Camp Hill, Pennsylvania (14542), with
and Parent Federal Savings Bank, Lancaster, Pennsylvania, with .
and The Gettysburg National Bank, Gettysburg, Pennsylvania, with .
Merged under charter 14542 and title “CCNB Bank, National Association." The merged bank at date of merger had
$767,915,000
76,921,000
316,098,000
1,169,234,000
December 1 1:
Mellon Bank, N A , Greensburg, Pennsylvania (6301), with .
and Meritor Savings Bank, Philadelphia, Pennsylvania, with .
Merged under charter and title of the former The merged bank at date of merger had
$27,831,344,000
Rhode Island
December 1 1:
Fleet National Bank, Providence, Rhode Island (1302), with .
and Eastland Bank, Woonsocket, Rhode Island, with .
and Eastland Savings Bank, Woonsocket, Rhode Island, with .
Merged under charter 1302 and title "Fleet National Bank." The merged bank at date of merger had
$8,058,565,000
South Carolina
June 15:
The Citizens and Southern National Bank of South Carolina, Charleston, South Carolina (14425), with
and NationsBank Trust Company (South Carolina), National Association, Columbia, South Carolina (21257), with
and NCNB National Bank of South Carolina, Columbia, South Carolina (21975), with .
Merqed under charter 14425 and title "NationsBank of South Carolina, National Association." The merged bank .
$3,807,000,000
50,000,000
4,993,000,000
8,850,000,000
December 31:
First National Bank, Orangeburg, South Carolina (13918), with .
and Santee Cooper State Bank, Elloree, South Carolina, with
Merged under charter and title of the former The merged bank at date of merger had .
$291,239,000
39,631,000
330,870,000
South Dakota
December 4:
First National Bank, Pierre, South Dakota (14252), with .
and Security Bank of South Dakota, National Association, Fort Pierre, South Dakota (9587), with
Merged under charter and title of the former The merged bank at date of merger had
$76,916,000
18,124,000
90,654,000
Texas
March 19:
First Western National Bank, Carrolton, Texas (17516), with .
and Independence Bank, Plano, Texas, with .
Merged under charter and title of the former The merged bank at date of merger had .
$134,077,000
May 29:
The First National Bank of Amarillo, Amarillo, Texas (4214), with .
and First State Bank, Dumas, Texas, with .
Merged under charter and title of the former The merged bank at date of merger had .
$728,606,000
68,442,000
789,671,000
May 31:
Bank Texas Houston, National Association, Houston, Texas (18172), with .
and Bank Texas McKinney, National Association, McKinney, Texas (14236), with .
Merged under charter 14236 and title "Bank Texas, National Association." The merged bank at date of merger had
$146,802,000
90,981,000
237,439,000
July 31:
Hamilton National Bank, Hamilton, Texas (4451), with .
and First National Bank, Bonham, Texas (3094), with .
and First National Bank, Cushing, Texas (1321 1), with .
Merged under charter 4451 and title "Hamilton National Bank." The merged bank at date of merger had
$110,556,000
55,936,000
16,697,000
183,189,000
‘This merger is also included in the list of mergers involving national banks and savings and loan institutions
115
Mergers consummated involving two or more operating banks, January 1 to December 31 , 1992 (continued)
Title and location of banks
Total assets
September 11:
State National Bank, El Paso, Texas (2521), with .
and El Paso State Bank, El Paso, Texas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$834,669,000
86,231,000
920,900,000
September 29
The First National Bank of Athens, Athens, Texas (4278), with .
and First National Bank of Gun Barrel City, Gun Barrel, Texas (20507), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$162,967,000
21,822,000
184,447,000
October 23:
Security National Bank of San Antonio, San Antonio, Texas (15136), with .
and Security National Bank East, San Antonio, Texas (20431), with .
Merged under charter and title of the former The merged bank at date of merger had .
$112,000,000
25,000,000
137,000,000
November 30:
Bank One, Texas, National Association, Dallas, Texas (21969), with .
and Team Bank, Fort Worth, Texas, with .
Merged under charter and title of the former The merged bank at date of merger had .
$13,752,942,000
5,415,088,000
19,168,030,000
December 31:
Bank of America Texas, National Association, Houston, Texas (22429), with .
and Sequor National Bank Texas, Dallas, Texas (22036), with .
Merged under charter and title of the former. The merged bank at date of merger had .
The First National Bank in Stamford, Stamford, Texas (13598), with .
and Olton State Bank, Olton, Texas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
The First National Bank of Fabens, Fabens, Texas (1 1700), with .
and Bank of Ysleta, El Paso, Texas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
Bank Texas National Association, Houston, Texas (14236), with .
and First Bank/Las Colinas, Irving, Texas, with .
Merged under charter and title of the former The merged bank at date of merger had .
$4,412,962,000
1 1,692,000
4,424,654,000
$31,329,000
19,346,000
50,675,000
$44,743,000
39,932,000
84,675,000
$281,815,000
23,631,000
305,446,000
Vermont
July 1:
First National Bank of Vermont, Springfield, Vermont (122), with .
and Caledonia National Bank, Danville, Vermont (1576), with .
and The Bradford National Bank, Bradford, Vermont (7267), with .
Merged under charter 122 and title "First National Bank of Vermont.” The merged bank at date of merger had .
$136,400,000
105,451,000
113,016,000
354,867,000
Virginia
March 31:
NationsBank of Virginia, National Association, Richmond, Virginia (1111), with .
and NCNB Virginia, McLean, Virginia, with .
Merged under charter and title of the former The merged bank at date of merger had .
$13,870,000,000
8,000,000
13,878,000,000
December 17:
Jefferson National Bank, Charlottesville, Virginia (6031 ), with .
and The Peoples Bank of Front Royal, Front Royal, Virginia, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$1,624,522,000
59,088,000
1,691,065,000
Washington
September 4
Seattle-First National Bank, Seattle, Washington ( 1 1 280), with .
and Security Pacific Bank Washington, National Association, Seattle, Washington (4375), with .
Merged under charter and title of the former The merged bank at date of merger had .
$12,240,000,000
8,005,000,000
20,362,000,000
West Virginia
June 2
Raleigh County National Bank, Beckley, West Virginia ( 16002), with .
and Gutf National Bank, Sophia, West Virginia (16542), with .
Merged under charter and title of the former The merged bank at date of merger had .
$216,012,000
28,820,000
244,729,000
116
Mergers consummated involving two or more operating banks, January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
October 1:
The First National Bank of Parsons, Parsons, West Virginia (9610), with .
and Bank of Mill Creek, Mill Creek, West Virginia, with .
Merged under charter 9610 and title “Mountain Valley Bank, National Association." The merged bank at date of
merger had .
$28,398,000
35,054,000
63,452,000
October 21:
United National Bank, Parkersburg, West Virginia (1427), with .
and Montgomery National Bank, Montgomery, West Virginia (5691), with .
Merged under charter and title of the former The merged bank at date of merger had .
$828,321,000
95,176,000
923,497,000
Wisconsin
January 1:
Norwest Bank Wisconsin Green Bay, National Association, Green Bay, Wisconsin (15057), with .
and Norwest Bank Wisconsin Northeast, Gillett, Wisconsin, with .
and Norwest Bank Wisconsin, New Berlin, Wisconsin, with .
and Norwest Bank Wisconsin East Central, Sheboygan, Wisconsin, with .
and Norwest Investments and Trust Co., Wisconsin, Sheboygan, Wisconsin, with .
and Norwest Bank Wisconsin Appleton, Appleton, Wisconsin, with .
Merged under charter 15057 and title “Norwest Bank Wisconsin, National Association.” The merged bank at date of
merger had .
$66,641,000
94,606,000
454,321,000
424,547,000
2,264,000
107,216,000
1,126,595,000
February 24:
First Wisconsin National Bank of Rice Lake, Rice Lake, Wisconsin (6663), with .
and Northwestern State Bank, Cumberland, Wisconsin, with .
Merged under charter and title of the former The merged bank at date of merger had .
$80,733,000
55,665,000
136,398,000
April 1:
The First National Bank of Portage, Portage, Wisconsin (4234), with .
and Peoples State Bank, Pittsville, Wisconsin, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$108,300,000
33,454,000
137,735,000
November 13:
Valley Bank, South Central (National Association), Watertown, Wisconsin (14064), with .
and Valley First National Bank of Beaver Dam, Beaver Dam, Wisconsin (7462), with .
Merged under charter and title of the former. The merged bank at date of merger had .
$75,600,000
80,773,000
156,374,000
December 4:
Firstar Bank Princeton, National Association, Princeton, Wisconsin (13904), with .
and Firstar Bank, Fond du Lac, National Association, Fond du Lac, Wisconsin (555), with .
Merged under charter 13904 and title “Firstar Bank Fond du Lac, National Association." The merged bank at date of
merger had .
$38,117,000
270,605,000
310,222,000
117
Mergers consummated involving national banks and savings and loan associations
January 1 to December 31 , 1992
Title and location of banks
Total assets
Alabama
March 13, 1992
AmSouth Bank, National Association, Birmingham, Alabama (3185), with .
and Jefferson Federal Savings & Loan Association, Birmingham, Alabama, with .
Merged under charter and title of the former. The merged bank at date of merger had
$8,306,804,000
Arkansas
March 27, 1992
First National Bank of Wynne, Wynne, Arkansas (10807) with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
First National Bank of Eastern Arkansas, Forrest City, Arkansas (13637), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former The merged bank at date of merger had .
First National Bank of Arkansas, Batesville, Arkansas (22543), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former The merged bank at date of merger had .
First Ozark National Bank, Flippin, Arkansas (18552), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
Pine Bluff National Bank, Pine Bluff, Arkansas, (15482), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former The merged bank at date of merger had .
Merchants and Planters Bank, National Association, Camden, Arkansas (18413), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former The merged bank at date of merger had .
First National Bank of Russellville, Russellville, Arkansas (16272), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former The merged bank at date of merger had .
Simmons First National Bank, Pine Bluff, Arkansas (6680), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
Firstbank, National Association, Bentonville, Arkansas (18327), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former The merged bank at date of merger had .
The State First National Bank of Texarkana, Texarkana, Arkansas (7138), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$115,062,000
$127,275,000
$30,358,000
$73,640,000
$71,817,000
$160,346,000
$578,946,000
$69,746,000
$399,404,000
Distnct of Columbia
January 10, 1992:
Crestar Bank, National Association, Washington, D C. (15605), with .
and Perpetual Savings Bank, FS B., Alexandria, Virginia, with .
Merged under charter and title of the former The merged bank at date of merger had .
$1,043,537,000
Florida
February 7, 1992:
Barnett Bank of Central Florida, National Association, Winter Park, Florida (14767), with .
and United Savings of America, FA., Melbourne, Florida, with .
Merged under charter and title of the former The merged bank at date of merger had .
$2,615,576,000
March 13, 1992:
First Union National Bank of Florida, Jacksonville, Florida (17695), with .
and Professional Federal Savings Bank, Coral Gables, Florida, with .
Merged under charter and title of the former The merged bank at date of merger had .
$26,607,840,000
March 27, 1992
First Union National Bank of Florida, Jacksonville, Florida (17695), with .
and Flagler Federal Savings and Loan Association, Miami, Florida, with .
Merged under charter and title of the former The merged bank at date of merger had .
$26,607,840,000
April 10, 1992
First Union National Bank of Florida, Jacksonville, Florida (17695), with .
and Security First Federal Savings and Loan Association, Daytona Beach, Florida, with .
Merged under charter and title of the former The merged bank at date of merger had
$28,393,440,000
118
Mergers consummated involving national banks and savings and loan associations,
January 1 to December 31 , 1992 (continued)
Title and location of banks
Total assets
Georgia
March 27, 1992:
Fidelity National Bank, Decatur, Georgia (16275), with .
and Federal Savings Bank, Swainsboro, Georgia, with .
Merged under charter and title of the former The merged bank at date of merger had .
Fidelity National Bank, Decatur, Georgia (16275), with .
and United Federal Savings Bank, Smyrna, Georgia, with .
Merged under charter and title of the former The merged bank at date of merger had .
First National Bank of Cherokee, Woodstock, Georgia (21836), with .
and United Federal Savings Bank, Marietta, Georgia, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$237,412,000
$237,412,000
$24,325,000
April 3, 1992:
North Georgia National Bank, Woodstock, Georgia (21919), with .
and First Federal Savings Bank, F.S.B., Atlanta, Georgia, with .
Merged under charter and title of the former. The merged bank at date of merger had .
Community National Bank, Ashburn, Georgia (22035), with .
and First Federal Savings Bank, Ashburn, Georgia, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$32,215,000
$41,976,000
Illinois
March 27, 1992:
First National Bank of Cicero, Cicero, Illinois (1 1662), with .
and Olympic Federal Savings Association, Cicero, Illinois, with .
Merged under charter and title of the former. The merged bank at date of merger had .
The First National Bank in Robinson, Robinson, Illinois (13605), with .
and Olympic Federal Savings Association, Cicero, Illinois, with .
Merged under charter and title of the former. The merged bank at date of merger had .
The First National Bank of Enfield, Enfield, Illinois (7948), with .
and Olympic Federal Savings Association, Cicero, Illinois, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$220,425,000
$89,499,000
$17,790,000
Kansas
March 27, 1992:
Bank IV Kansas, National Association, Wichita, Kansas (12490), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
First National Bank and Trust, Salina, Kansas (4742), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri .
Merged under charter and title of the former. The merged bank at date of merger had .
Exchange National Bank, Marysville, Kansas (18165), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$4,139,635,000
$296,336,000
$77,286,000
July 1, 1992:
The First National Bank of Kingman, Kingman, Kansas (3509), with .
and Kingman Savings and Loan Association, Kingman, Kansas, with .
Merged under charter and title of the former The merged bank at date of merger had .
$36,794,000
28,506,000
64,687,000
Kentucky
September 4, 1992:
Central Trust Northern Kentucky, National Association, Fort Wright, Kentucky (4260), with .
and Sunrise Bank for Savings, F.S.B., Fort Mitchell, Kentucky, with
Merged under charter and title of the former. The merged bank at date of merger had .
$130,713,000
265,965,000
402,387,000
Louisiana
January 31, 1992:
First National Bank of Commerce, New Orleans, Louisiana (13689), with
and Pelican Homestead and Savings Association, Metarie, Louisiana, with
Merged under charter and title of the former. The merged bank at date of merger had
City National Bank of Baton Rouge, Baton Rouge, Louisiana (13737), with
and Pelican Homestead and Savings Association, Metarie, Louisiana, with
Merged under charter and title of the former. The merged bank at date of merger had
$3,123,658,000
$774,522,000
119
Mergers consummated involving national banks and savings and loan associations,
January 1 to December 31, 1992 (continued)
Title and location of banks
Total assets
Maryland
March 20, 1992 :
Frederick County National Bank, Frederick, Maryland (13747), with .
and Augusta Federal Savings Association, Baltimore, Maryland, with .
Merged under charter and title of the former. The merged bank at date of merger had .
Harford National Bank, Aberdeen, Maryland (15314), with .
and Augusta Federal Savings Association, Baltimore, Maryland, with .
Merged under charter and title of the former The merged bank at date of merger had .
First National Bank of Maryland, Baltimore, Maryland (1413), with .
and Augusta Federal Savings Association, Baltimore, Maryland with .
Merged under charter and title of the former The merged bank at date of merger had .
$340,024,000
$78,568,000
$6,738,220,000
Missouri
March 19, 1992:
Commerce Bank of St Louis, National Association, Clayton, Missouri (16945), with .
and New Age Federal Savings Association, St Louis, Missouri, with .
Merged under charter and title of the former The merged bank at date of merger had .
$2,535,649,000
March 27, 1992:
Mercantile Bank of Joplin, National Association, Joplin, Missouri (13162), with .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
Citizens National Bank of Maryville, Maryville, Missouri (21815) .
and Home Federal Savings Association of Kansas City, Kansas City, Missouri, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$315,712,000
$180,764,000
New Jersey
October 2, 1992:
First Fidelity Bank, National Association, Newark, New Jersey (1452), with .
and The Howard Federal Savings, F A., Berlin, New Jersey, with .
Merged under charter and title of the former The merged bank at date of merger had .
$13,738,512,000
North Carolina
March 20, 1992:
Southern National Bank of North Carolina, Lumberton, North Carolina (10610), with .
and Workmen’s Federal Savings Bank, Mount Airy, North Carolina, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$3,019,318,000
267,701,000
3,292,136,000
May 22, 1992:
Southern National Bank of North Carolina, Lumberton, North Carolina (10610), with .
First Security Savings and Loan Association, Inc., Pinehurst, North Carolina, with .
Merged under charter and title of the former The merged bank at date of merger had .
$3,528,410,000
Ohio
October 31, 1992:
The Farmers Banking Company, National Association, Lakeview, Ohio (18342), with .
and Citizens Loan and Building Company, Lima, Ohio, with .
Merged under charter 18342 and title “American Community Bank, National Association." The merged bank at date
of merger had .
$90,678,000
125,658,000
216,337,000
Oklahoma
March 20, 1992
The Farmers and Merchants National Bank of Fairview, Fairview, Oklahoma (9767), with .
and Chisholm Federal Savings and Loan Association of Kingfisher, Kingfisher, Oklahoma, with .
Merged under charter and title of the former The merged bank at date of merger had .
The National Bank of Commerce, Altus, Oklahoma (13756), with .
and Chisholm Federal Savings and Loan Association of Kingfisher, Kingfisher, Oklahoma, with .
Merged under charter and title of the former The merged bank at date of merger had
$38,627,000
$59,576,000
120
Mergers consummated involving national banks and savings and loan associations
January 1 to December 31 , 1992 (continued)
Title and location of banks
Total assets
March 27, 1992:
The First National Bank in Marlow, Marlow, Oklahoma (20838), with
and Red River Federal Savings and Loan Association, Lawton, Oklahoma, with
Merged under charter and title of the former. The merged bank at date of merger had
First National Bank of Altus, Altus, Oklahoma (12155), with .
and Red River Federal Savings and Loan Association, Lawton, Oklahoma, with
Merged under charter and title of the former The merged bank at date of merger had
$28,358,000
$119,026,000
Pennsylvania
October 23, 1992:
CCNB Bank, National Association, Camp Hill, Pennsylvania (14542), with
and Parent Federal Savings Bank, Lancaster, Pennsylvania, with
and The Gettysburg National Bank, Gettysburg, Pennsylvania (611) with
Merged under charter 14542 and title “CCNB Bank, National Association." The merged bank at date of merger had
$767,915,000
76,921,000
316,098,000
1,169,234,000
November 20, 1992:
Provident National Bank, Philadelphia, Pennsylvania (15422), with
and First American Savings, F.A., Jenkintown, Pennsylvania, with .
and Brandywine Savings Bank, Dowingtown, Pennsylvania, with ...
Merged under charter 15422 and title “Provident National Bank." The merged bank at date of merger had
$7,039,247,000
634,131,000
238,682,000
7,912,060,000
South Carolina
October 23, 1992:
Southtrust Bank of Charleston, National Association, Charleston, South Carolina (21875) with
and Home Federal Savings Bank, Charleston, South Carolina, with
Merged under charter and title of the former. The merged bank at date of merger had
$75,865,000
156,691,000
232,556,000
December 21, 1992:
The National Bank of South Carolina, Sumter, South Carolina (10660), with
and First Trident Savings and Loan Corporation, Charleston, South Carolina, with
Merged under charter and title of the former. The merged bank at date of merger had
$600,231,000
79,606,000
680,428,000
Tennessee
March 27, 1992:
Union Planters National Bank, Memphis, Tennessee (13349), with .
and Metropolitan Federal Savings and Loan Association, Nashville, Tennessee, with
Merged under charter and title of the former. The merged bank at date of merger had
$2,208,884,000
March 30, 1992:
Union Planters National Bank, Memphis, Tennessee (13349), with . .
and FFSB Interim National Bank, Nashville, Tennessee (22526), with ....
and Fidelity Federal Savings and Loan Association, Nashville, Tennessee, with
Merged under charter 13349 and title “Union Planters National Bank." The merged bank at date of merger had ...
$2,208,884,000
995,970,000
2,896,867,000
Texas
March 20, 1992:
First National Bank at Lubbock, Lubbock, Texas (14208) with
and First Federal Savings Bank of West Texas, Lubbock, Texas, with
Merged under charter and title of the former. The merged bank at date of merger had
$853,557,000
April 3, 1992:
The First National Bank of Panhandle, Panhandle, Texas (13070), with . .
and New Merabank Texas, Federal Savings Bank, El Paso, Texas, with .
Merged under charter and title of the former. The merged bank at date of merger had
First Western National Bank, Carrollton, Texas (17516), with .
and New Merabank Texas, Federal Savings Bank, El Paso, Texas, with .
Merged under charter and title of the former. The merged bank at date of merger had .
$45,250,000
$154,128,000
April 10, 1992:
Bank of America Texas, National Association, Houston, Texas (22429), with .
and Sunbelt Federal Savings, Federal Savings Bank, El Paso, Texas, with
Merged under charter and title of the former The merged bank at date of merger had
$730,809,000
121
Mergers consummated involving national banks and savings and loan associations,
January 1 to December 31, 1992 (continued)
Utah
Title and location of banks
Total assets
February 28, 1992:
Zions First National Bank, Salt Lake City, Utah (4341), with .
and Home Savings Bank, FS B , Salt Lake City, Utah, with .
Merged under charter and title of the former The merged bank at date of merger had
$3,179,981,000
Virginia
March 6, 1992:
The First National Bank of Altavista, Altavista, Virginia (9295), with .
and Coreast Federal Savings Bank, Altavista, Virginia, with .
Merged under charter and title of the former. The merged bank at date of merger had
Wisconsin
March 13, 1992:
First National Bank, Waupaca, Wisconsin (21610), with .
and Monycor Federal Savings Bank, Barron, Wisconsin, with .
Merged under charter and title of the former. The merged bank at date of merger had
September 11, 1992:
First Wisconsin National Bank of Milwaukee, Milwaukee, Wisconsin (64), with .
and Federated Bank, S.S.B., Wauwatosa, Wisconsin, with .
Merged under charter and title of the former. The merged bank at date of merger had
$94,431,000
$103,954,000
$4,565,455,000
435,988,000
5,01 1,764,000
122
Applications for national bank charters, July 1 to December 31 , 1992 *
Received
Approved
Denied
Charters
issued
State-chartered
banks
converted to
national banks
Savings and
loan associations
converted to
national banks
Alabama .
0
0
0
0
0
0
Alaska .
0
0
0
0
0
0
Arizona .
0
0
0
0
0
0
Arkansas .
0
0
0
0
0
0
California .
0
1
0
1
0
1
Colorado .
0
0
0
1
0
0
Connecticut .
0
0
0
0
0
0
Delaware .
0
0
0
0
0
0
District of Columbia .
1
1
0
1
0
0
Florida .
0
0
0
0
0
0
Georgia .
1
0
0
3
0
0
Hawaii .
1
0
1
0
0
0
Idaho .
0
0
0
0
0
0
Illinois .
0
0
0
0
1
0
Indiana .
0
0
0
0
0
0
Iowa .
0
0
0
0
0
0
Kansas .
0
0
0
0
0
0
Kentucky .
0
0
0
0
0
0
Louisiana .
0
0
0
0
0
0
Maine .
0
0
0
0
0
0
Maryland .
0
0
0
0
0
0
Massachusetts .
0
1
0
1
0
0
Michigan .
0
0
0
0
0
0
Minnesota .
0
0
0
0
0
0
Mississippi .
0
0
0
0
0
0
Missouri .
0
0
0
0
0
0
Montana .
0
0
0
1
0
0
Nebraska .
1
0
0
0
0
0
Nevada .
1
0
0
0
0
0
New Hampshire .
0
0
0
0
0
0
New Jersey .
0
0
0
0
0
0
New Mexico .
0
0
0
0
0
0
New York .
1
0
0
0
0
0
North Carolina .
0
0
0
0
0
0
North Dakota .
0
0
0
0
0
0
Ohio .
2
0
0
0
1
1
Oklahoma .
0
0
0
0
0
0
Oregon .
0
0
0
0
0
0
Pennsylvania .
0
0
0
0
0
0
Rhode Island .
0
0
0
0
0
0
South Carolina .
0
0
0
0
0
0
South Dakota .
0
0
0
0
0
0
Tennessee .
0
0
0
0
0
0
Texas .
0
0
0
1
0
0
Utah .
0
0
0
0
0
0
Vermont .
0
0
0
0
0
0
Virginia .
0
0
0
0
0
0
Washington .
0
0
0
1
0
0
West Virginia .
0
0
0
0
0
0
Wisconsin .
0
1
0
0
0
Wyoming .
0
0
0
0
0
0
Puerto Rico .
0
0
0
0
0
0
United States .
8
4
1
10
2
2
'These figures may also include trust company, credit card bank, and other limited charter national banks
123
Applications for new national bank charters, approved and rejected by states, July 1 to December 31 , 1992
Title and location of bank
Approved
Rejected
California
Inland Valley National Bank, Pomona .
October 29
Distnct of Columbia
Atlantic Trust Company, National Association, Washington .
November 20
Hawaii
Royal Pacific Bank, National Association, Honolulu .
October 2
Massachusetts
Allmerica Trust Company, Worcester .
July 23
Wisconsin
American National Bank-Fox Appleton .
September 14
124
New national bank charters issued, July 1 to December 31 , 1992
Title and location of bank
Charter
Date
California
First Trust of California, San Francisco .
22508
July 2
Colorado
The First National Bank of Telluride, Telluride
18787
September 25
District of Columbia
Atlantic Trust Company, National Association, Washington
22590
December 18
Georgia
First South Bank of Ben Hill, Fitzgerald .
22529
October 30
First South Bank of Coweta County, Newnan .
22530
October 30
First South Bank of Jones County, Gray .
22531
October 30
Massachusetts
Allmerica Trust Company, Worcester .
22481
October 1
Montana
First Interstate Bank of South Missoula, Missoula
18789
November 30
Tennessee
EFS National Bank, Memphis .
22404
December 1
Washington
Kittitas Valley Bank, National Association, Ellensburg
18790
October 23
125
State-chartered banks converted to national banks, July 1 to December 31 , 1992
Title and location of bank
Effective date
Total assets
Illinois
Citizens First National Bank of Peru (22524), conversion of Colonial Bank & Trust Company of
Lasalle County, Peru .
July 1
$ 53,831,000
Ohio
National City Bank, Northwest, Toledo (22582), conversion of Ohio Citizens Bank, Toledo .
November 16
1,061,254,000
Savings and loan associations converted to national banks, July 1 to December 31 , 1992
Title and location of bank
Effective date
Total assets
California
Roseville 1st National Bank, Roseville (22518), conversion of Countryside Thrift and Loan of
Citrus Heights, Citrus Heights .
July 1
$ 17,388,000
Ohio
First Lima National Bank of Lima, Lima (22536), conversion of First Federal Savings and Loan
Association of Lima, Lima .
September 5
171,898,000
126
National banks converted to state banks, July 1 to December 31, 1992
Title and location of bank
Effective date
Total assets
Florida
Safrabank, N A . Miami (17551) .
November 20
$286,508,000
Idaho
The Idaho First National Bank, Boise (21979) .
West One Bank, Idaho, N.A., Boise (1668) .
December 4
December 4
118,511,000
3,659,985,000
Iowa
Community National Bank, Tipton (22406) .
Community National Bank of Muscatine, Muscatine (16886) .
Farmers National Bank, Webster City (3420) .
First National Bank, Huxley (20417) .
The First National Bank in Glidden, Glidden (14326) .
Lamoni National Bank, Lamoni (17701) .
Peoples National Bank of Columbus Junction, Columbus Junction (15069) .
December 31
December 15
July 27
July 21
November 30
December 31
December 15
55,603,000
43,000,000
91,500,000
17,000,000
37,332,000
24,332,000
40,000,000
Louisiana
National Bank of Commerce, Baton Rouge (18330) .
December 7
40,617,000
Michigan
Commercial National Bank, Alma (15001) .
FMB-Financial Group, N.A., Holland Township (22276) .
Southern Michigan National Bank, Coldwater (1924) .
December 30
December 30
December 15
127,959,000
8,433,000
147,000,000
Montana
First Interstate Bank, N.A., Billings (16362) .
First Interstate Bank, N.A., Missoula (2106) .
First Interstate of South Missoula, N.A., Missoula (18789) .
December 1
December 1
December 1
320,610,000
204,822,000
1,000
New Mexico
First National Bank of Grants, Grants (14836) .
September 1 1
32,885,000
North Dakota
Security National Bank, Edgeley (12003) .
July 31
13,700,000
Oklahoma
First National Bank and Trust Company, Frederick (13760) .
July 1
132,723,000
Tennessee
First Heritage National Bank, Loudon (12080) .
July 31
65,339,000
Texas
First National Bank in Belton, Belton (13810) .
First National Bank, Copperas Cove (16683) .
First National Bank of Lampasas, Lampasas (3261) .
First National Bank of Round Rock, Round Rock (16019) .
December 31
December 31
December 31
December 31
41,729,000
39,361,000
93,700,000
9,999,000
Virginia
Farmers National Bank, Appomattox (1 1205) .
August 31
72,988,000
Washington
Bellingham National Bank, Bellingham (21735) .
Puget Sound National Bank, Tacoma (12292) .
December 21
December 21
434,910,000
3,079,005,000
Wyoming
Shoshone First National Bank, Cody (8020) .
The Citizens National Bank and Trust Company, Torrington (11132) .
December 15
October 1
1 17,177,000
70,000,000
127
National banks merged into state banks, July 1 to December 31, 1992
Title and location of bank
Charter number
Effective date
California
First National Bank, Coachella .
14317
December 31
Flonda
Sun Bank/West Florida, N.A., Pensacola .
14909
December 4
Massachusetts
Falmouth National Bank, Falmouth .
1320
September 30
Michigan
1st of America Bank, N A Plymouth .
16393
July 17
Manufacturers Bank, N A , Detroit .
13738
September 14
Minnesota
Minnetonka National Bank, Minnetonka .
16548
October 16
Missouri
Boatmen’s National Bank of Cassville, Cassville .
8979
July 20
The Boatmen's National Bank of Springfield, Springfield .
5209
July 20
Southwest Bank, N A . Republic .
18409
December 23
Montana
First National Bank in Hysham, Hysham .
12585
November 30
New Jersey
Highlands Community Bank, N A . Clinton .
21 106
September 25
HUB National Bank, West Orange .
12732
September 25
New York
Fleet Bank of New York, N.A., Buffalo .
15080
October 1
Oklahoma
First National Bank of Konawa, Konawa .
7633
October 30
Pennsylvania
Peoples National Bank, Lebanon .
4955
December 4
Tennessee
Executive Park National Bank, Kingsport .
18583
December 1
Texas
City National Bank of Carrollton, Carrollton .
18559
October 28
The Farmers and Merchants National Bank of Merkel, Merkel .
7481
October 30
First National Bank of Rockport, Rockport .
4438
December 1
First National Bank of Texas, Webster .
20482
July 23
First National Bank of Yorktown, Yorktown .
6987
September 10
First Western National Bank, Carrollton .
17516
December 22
Washington
Edmonds National Bank, Edmonds .
18710
November 13
West Virginia
Community Bank & Trust, N A , Elkins .
14002
November 16
128
National banks liquidated under emergency procedures, July 1 to December 31, 1992
Title and location of bank
Charter number
Effective date
Hawaii
Eastwest Bank, N. A , Honolulu .
16777
October 2
Texas
Collecting Bank National Association, Houston .
21659
October 30
National banks in voluntary liquidation, July 1 to December 31, 1992*
Title and location of bank
Charter number
Effective date
Connecticut
Fleet National Bank Connecticut, Hartford .
18676
October 7
Florida
Fifth Third Trust Company, N A,, Naples .
22154
October 31
New York
The National Commerce Bank, New York .
80068
September 1 1
Texas
National Asset Bank (Liquidation), Houston .
15809
September 30
"The banks included on this list are in voluntary liquidation and are permanently closing. They are not to be confused with banks that are " merging "
under a purchase and assumption transaction.
129
Mergers consummated involving a single operating bank, July 1 to December 31 , 1992
Date
consummated
Merging banks
Resulting bank
Total assets
November 6
District of Columbia
Franklin National Bank of Washington, D C .
Franklin Interim National Bank. Washington, D C .
Franklin National Bank of Washington, D C .
Washington, D C (17899) .
$1 19,921,000
December 1
Illinois
First National Bank and Trust Company in Gibson City, Gibson City .
First Interim National Bank and Trust Company in Gibson City, Gibson City .
First National Bank and Trust Company in Gibson City, Gibson City (5322) .
32,140,000
November 20
Kentucky
Ohio Valley National Bank of Henderson, Henderson .
National Acquisition Bank of Ohio Valley, Henderson .
Ohio Valley National Bank of Henderson, Henderson (13983) .
106,112,000
December 1 1
Morehead National Bank, Morehead .
New Morehead National Bank, Morehead .
Morehead National Bank, Morehead (18433) .
18,640,000
September 30
Louisiana
The First National Bank of Lafayette, Lafayette .
New First National Bank of Lafayette, Lafayette .
The First National Bank of Lafayette, Lafayette (5023) .
435,000,000
July 1
Michigan
First Bank, Upper Michigan, National Association, Gladstone .
New National Bank of Gladstone, Gladstone .
First Bank, Upper Michigan, National Association, Gladstone (14111) .
40,955,000
July 1
Nevada
Continental National Bank, Las Vegas .
Continental Interim National Bank, Las Vegas .
Continental National Bank, Las Vegas (17624) .
133,400,000
July 17
Ohio
The First National Bank of Barnesville, Barnesville .
FNB National Bank, Barnesville .
The First National Bank of Barnesville, Barnesville (911) .
141,000,000
July 1
South Carolina
The Peoples National Bank, Easley .
New Peoples National Bank, Easley .
The Peoples National Bank, Easley (21037) .
46,764,000
July 1
Virginia
The Grayson National Bank, Independence .
Independence National Interim Bank, Independence .
Grayson National Bank, Independence (10834) .
76,266,000
130
Federal branches and agencies of foreign banks in operation, July 1 to December 31, 1992
In operation,
Opened,
Closed,
In operation.
July 1
July 1-December 31 , 1992
July 1-December 31 , 1992
December 31 , 1992
Federal branches
California .
4
0
0
4
District of Columbia .
1
0
0
1
Illinois .
1
0
0
1
New York .
53
0
1
52
Washington .
1
0
0
1
Limited federal branches
California .
11
0
0
11
District of Columbia ....
2
0
0
2
Illinois .
4
0
2
2
New York .
5
0
0
5
Federal Agencies
Florida .
1
0
0
1
United States
83
0
3
80
Applications for federal branches of foreign banks, by states, July 1 to December 31, 1992
Received
Approved
Disapproved
Withdrawn
California .
1
0
0
0
131
Statistical Tables
Page
Assets, liabilities, and capital accounts of national banks, December 31 , 1991 and
December 31, 1992 . 135
Income and expenses of foreign and domestic offices and subsidiaries of national banks,
December 31, 1992 . 136
Loans of national banks, by state, December 31 , 1 992 . 137
Deposits of national banks, by state, December 31 , 1 992 . . 138
Interest income of national banks, by state, December 31, 1992 . 139
Noninterest income of national banks, by state, December 31 , 1 992 . 140
Interest expense of national banks, by state, December 31, 1992 . 141
Noninterest and other expense of national banks, by state, December 31,1 992 . 142
Book value of securities at domestic offices of national banks, by state, December 31,1 992 . 143
Off-balance sheet items at national banks, by state, December 31, 1992 . 144
Outstanding balances, credit cards, and related plans of national banks, by state, December 31,1 992 ... 145
Consolidated foreign and domestic loans and leases past due at national banks, by state,
December 31, 1992 . 146
Percent of loans past due, by asset size of national banks . 147
Tables provided by the Banking Research and Statistics Division.
133
Assets, liabilities and capital accounts of national banks, December 31 , 1991, and December 31 , 1992
(Dollar amounts in millions)
December 31,
1991
December 31,
1992
Change
December 31, 1991-
December 31, 1992
fully consolidated
Consolidated
foreign and
domestic
Consolidated
foreign and
domestic
Amount
Percent
Assets
Cash and balances due from depository institutions: .
Noninterest-bearing balances and currency and coin .
$128,044
$123,945
-$4,100
-3.20
Interest-bearing balances .
56,900
57,835
934
1.64
Investment Securities .
360,021
404,018
43,998
12 22
Federal funds sold and securities purchased under agreements to
resell .
84,682
93,540
8,859
10.46
Loans and leases, net of unearned income .
1,227,504
1,192,697
-34,807
-2.84
Less allowance for loan and lease losses .
33,735
32,953
-781
-2.32
Less allocated transfer risk reserve .
175
133
-42
-24 05
Net loans and leases .
1,193,594
1,159,611
-33,983
-2.85
Premises and fixed assets .
30,377
30,857
481
1.58
Other real estate owned .
17,664
17,147
-518
-2.93
All other assets .
109,387
1 17,609
8,223
7.52
Total assets .
1,980,669
2,004,562
23,893
1.21
Liabilities
Deposits:
Noninterest-bearing deposits in domestic offices .
287,594
318,154
30,560
10.63
Interest-bearing deposits in domestic offices .
1,089,385
1,051,399
-37,986
-3.49
Total domestic deposits .
1,376,979
1,369,553
-7,426
-0.54
Total foreign deposits .
192,928
180,275
-12,653
-6.56
Total deposits .
1,569,908
1,549,828
-20,080
-1.28
Federal funds purchased and securities sold under agreements to
to repurchase .
129,562
152,782
23,219
17.92
Demand notes issued to the U S. Treasury .
18,462
13,577
-4,885
-26 46
Other borrowed money .
59,799
61,514
1,715
2.87
Subordinated notes and debentures .
15,497
21,090
5,593
36.09
All other liabilities .
60,600
60,910
310
0.51
Total Liabilities .
1,853,827
1,859,701
5,873
0.32
Limited-life preferred stock .
6
0
-5
N/M*
Equity Capital
Perpetual preferred stock .
370
303
-67
-18 08
Common Stock .
16,143
16,110
-32
-0.20
Surplus .
55,542
66,555
11,013
19 83
Net undivided profits and capital reserves .
55,301
62,557
7,256
13.12
Cumulative foreign currency translation adjustments .
-520
-664
-144
N/M*
Total equity capital .
126,836
144,862
18,025
14.21
Total liabilities, limited-life preferred stock, and equity capital . .
1,980,669
2,004,562
23,893
1.21
‘Not meaningful
Note: Preliminary end-of-quarter data. Zeros indicate amounts of less than $500,000
135
Income and expenses of foreign and domestic offices and subsidiaries of national banks, December 31 , 1992
(Dollar amounts in millions)
Consolidated
foreign and
domestic
Percent
distribution
Interest income
Interest and fee income on loans .
$107,180
72.2
Income from lease financing receivables .
2,912
2.0
Interest income on balances due from depository institutions .
4,751
3.2
Interest and dividend income on securities .
27,273
18 4
Interest income from assets held in trading accounts .
2,902
2.0
Interest income from federal funds sold and securities purchase agreements
to resell . .
3,477
148,494
2 3
Total interest income .
100.0
Interest expense:
Interest on deposits .
57,056
79.1
Expense of federal funds purchased and securities sold under agreements to
repurchase .
5,421
7.5
Interest on demand notes issued to the U S. Treasury and on other borrowed money .
8,380
11.6
Interest on mortgage indebtedness and obligations under capitalized leases .
98
0.1
Interest on notes and debentures subordinated to deposits .
1,193
1.7
Total interest expense .
72,148
100.0
Net interest income .
76,347
Provision for loan and lease losses .
15,392
Provision for allocated transfer risk .
-62
Noninterest income:
Service charges on deposit accounts .
8,760
22.1
Other noninterest income .
30,848
77.9
Total noninterest income .
39,608
100.0
Gains and losses on securities not held in trading accounts .
2,226
Noninterest expense:
Salaries and employee benefits .
31,433
40.4
Expenses of premises and fixed assets (net of rental income) .
10,615
13.6
Other noninterest expense .
35,716
45.9
Total noninterest expense .
77,764
100 0
Income (loss) before income taxes and extraordinary items and other adjustments . . .
25,086
Applicable income taxes .
8,039
Income before extraordinary items and other adjustments .
16,948
Extraordinary items and other adjustments, net of taxes .
340
Net Income .
17,287
Total cash dividends declared* .
7,553
Recoveries credited to allowance for possible loan losses .
3,361
Losses charged to allowance for possible loan losses .
19,037
Net loan losses .
15,676
'Banks with assets of less than $100 million report this item only in their December Report of Income.
Note Preliminary year-to-date data.
136
Loans of national banks, by state, December 31 , 1992
(Dollar amounts in millions)
Total
loans,
gross
Domestic offices
Total
loans at
foreign
offices
Loans
secured
by real
estate
Loans to
farmers
Commercial
and
industrial
loans
Loans
to
individuals
Other
loans
All national banks
$1,196,870
$479,859
$14,466
$270,137
$207,580
$93,491
$131,336
Alabama .
1 1 ,995
5,342
79
3,388
2,322
863
0
Alaska .
1,493
643
0
524
203
119
5
Arizona .
1 1 ,804
3,969
307
1,638
5,160
730
0
Arkansas .
6,185
3,196
216
1,191
1,359
224
0
California .
155,296
77,140
2,126
22,881
20,469
7,652
25,028
Colorado .
10,108
3,884
41 1
1,881
3,389
543
0
Connecticut .
12,761
7,393
6
3,457
862
1,042
0
Delaware .
16,872
525
1
123
16,142
82
0
District of Columb .
5,806
3,135
0
1,322
371
630
348
Florida .
59,827
36,079
223
8,283
1 1 ,803
3,347
92
Georgia .
28,412
10,364
92
8,353
6,600
2,900
102
Hawaii .
222
142
0
69
10
2
0
Idaho .
3,137
1,155
237
497
1,070
179
0
Illinois .
60,382
20,325
812
22,098
6,788
6,675
3,686
Indiana .
21,606
9,435
308
4,749
5,579
1,534
0
Iowa .
7,619
3,324
640
1,528
1,786
341
0
Kansas .
6,968
2,836
909
1,477
1,471
276
0
Kentucky .
12,237
5,224
152
2,776
2,841
1,240
3
Louisiana .
9,737
4,219
55
2,362
2,444
640
17
Maine .
1,547
1,076
4
297
131
41
0
Maryland .
17,050
8,687
14
3,095
3,917
1,043
294
Massachusetts .
33,108
1 1 ,908
17
11,842
1,433
2,363
5,544
Michigan .
28,874
12,741
139
8,181
4,707
2,168
938
Minnesota .
27,029
12,810
626
6,661
2,999
3,818
1 16
Mississippi .
5,273
2,492
91
1,122
1,144
424
0
Missouri .
19,154
8,809
316
5,116
3,151
1,762
0
Montana .
1,661
529
159
308
632
32
0
Nebraska .
7,977
2,172
1,318
1,292
2,850
345
0
Nevada .
5,275
1,144
10
253
3,838
30
0
New Hampshire .
743
271
0
82
389
2
0
New Jersey .
44,245
25,855
39
9,556
4,905
3,755
136
New Mexico .
3,797
2,249
101
540
800
107
0
New York
193,205
44,144
206
30,841
12,414
13,257
92,343
North Carolina .
38,021
15,857
157
12,350
3,477
5,361
817
North Dakota .
1,836
709
253
424
391
58
0
Ohio .
62,330
23,311
285
14,440
19,581
4,670
44
Oklahoma .
8,078
3,495
591
2,024
1,604
363
0
Oregon .
11,801
4,205
226
3,412
2,529
1,429
0
Pennsylvania .
69,887
27,763
106
21,997
9,250
9,371
1,400
Rhode Island .
7,987
3,176
0
3,070
476
1,253
11
South Carolina .
12,303
7,032
37
2,114
1,960
1,159
0
South Dakota .
8,153
850
408
1,639
5,084
172
0
Tennessee .
15,616
6,859
86
3,882
3,510
1,279
0
Texas .
64,892
24,207
1,577
21,116
11,451
6,179
363
Utah .
5,421
2,254
116
1,129
1,397
524
0
Vermont .
1,473
956
5
306
167
38
0
Virginia .
15,060
7,140
78
3,794
2,967
1,081
0
Washington .
20,297
8,287
605
5,416
4,973
979
37
West Virginia .
6,191
3,434
10
1,003
1,549
194
0
Wisconsin .
14,663
6,448
238
3,924
2,888
1,152
13
Wyoming .
774
270
75
175
239
15
0
Puerto Rico .
682
387
1
139
108
47
0
Note: Preliminary end-of-quarter data. Zeros indicate amounts of less than $500,000
137
Deposits of national banks, by state, December 31, 1992
(Dollar amounts in millions)
Total
demand
deposits at
deomestic
offices
All
NOW
accounts
Money
market
deposit
accounts
Large
time
deposits
All other
deposits at
domestic
offices
Total
deposits
at
foreign
offices
Total
consolidated
deposits
All national banks
$309,407
$168,003
$274,164
$121,830
$496,148
$180,275
$1,549,828
Alabama .
2,638
1,795
3,052
1,605
5,595
291
14,977
Alaska .
807
232
413
285
887
0
2,625
Arizona .
3,984
2,091
4,582
960
4,994
0
16,612
Arkansas .
2,024
1,996
1,344
1,234
4,927
0
1 1,526
California .
40,196
16,689
45,492
1 1,583
40,089
18,314
172,363
Colorado .
5,089
3,160
4,133
975
5,286
44
18,686
Connecticut .
4,828
2,210
2,736
974
7,233
309
18,290
Delaware
383
137
2,505
3,434
1,372
103
7,934
District of Columbia
2,375
1,755
2,611
1,109
2,078
896
10,824
Florida .
17,422
13,199
17,669
8,314
31,084
207
87,895
Georgia
8,287
4,563
5,103
2,397
10,809
305
31,464
Hawaii .
67
45
31
44
113
0
299
Idaho .
642
503
632
229
1,579
0
3,586
Illinois .
17,640
7,248
1 1 ,928
12,974
26,026
12,494
88,310
Indiana .
5,624
4,043
4,441
1,883
1 1,628
64
27,683
Iowa .
2,335
1,672
1,766
543
5,094
0
1 1,409
Kansas .
2,100
1,969
2,053
860
5,509
0
12,492
Kentucky .
3,137
2,675
1,973
1,159
6,769
174
15,887
Louisiana .
4,357
2,633
3,062
2,110
7,143
32
19,337
Maine .
255
254
213
127
1,063
0
1,91 1
Maryland .
4,953
2,365
3,523
2,725
9,21 1
456
23,232
Massachusetts .
7,228
3,173
7,446
3,376
9,589
5,661
36,474
Michigan .
7,273
2,898
7,331
2,822
14,345
1,879
36,548
Minnesota .
7,867
4,025
6,182
1,955
10,334
320
30,683
Mississippi .
1,629
1,328
1,549
934
3,499
0
8,939
Missouri .
6,575
4,011
5,776
1,431
1 1,518
161
29,473
Montana .
516
488
553
140
1,080
0
2,777
Nebraska .
2,119
1,739
1,293
908
5,415
0
11,474
Nevada .
1,020
531
1,124
424
1,61 1
0
4,709
New Hampshire .
77
104
100
301
271
0
853
New Jersey .
13,984
7,913
8,314
3,394
31,545
46
65,196
New Mexico .
1,083
1,141
1,006
634
2,766
0
6,629
New York .
31,479
8,539
29,375
10,775
28,943
125,169
234,280
North Carolina .
7,902
4,587
5,808
3,876
1 1 ,926
5,004
39,102
North Dakota .
499
620
472
205
1,497
0
3,293
Ohio .
13,526
8,509
10,700
4,018
32,932
2,283
71,969
Oklahoma .
3,251
2,400
2,234
1,677
6,502
42
16,105
Oregon .
2,991
2,225
2,932
446
4,657
0
13,250
Pennsylvania .
17,836
8,212
17,329
6,091
38,388
3,893
91,749
Rhode Island
1,360
588
1,742
1,723
2,804
385
8,601
South Carolina .
2,802
2,718
2,571
1,030
5,144
0
14,265
South Dakota .
729
601
1,175
1,100
3,527
0
7,132
Tennessee .
4,706
2,972
4,668
1,806
9,585
48
23,785
Texas .
25,348
16,256
20,920
12,211
36,372
1,362
112,468
Utah .
1,667
1,068
1,254
188
2,858
69
7,103
Vermont .
258
268
356
97
836
0
1,816
Virginia
4,543
3,149
2,966
1,449
8,998
15
21,122
Washington .
6,055
2,750
5,917
1,045
5,918
37
21,723
West Virginia .
1,326
1,278
840
516
5,519
0
9,479
Wisconsin
4,226
2,188
2,663
968
8,409
212
18,666
Wyoming .
310
366
296
168
652
0
1,793
Puerto Rico
80
124
9
599
219
0
1,031
Mote Preliminary end-of-quarter data Zeros indicate amounts of less than $500,000
138
Interest income of national banks, by state, December 31, 1992
(Dollar amounts in millions)
Interest
and fees
on loans
Income
from
lease
financing
Interest due
from other
depository
institutions
Interest
and
dividends on
securities
Interest
from trading
account
assets
Interest
from federal
funds
transactions
Total
interest
income
All national banks
$107,180
$2,912
$4,751
$27,273
$2,902
$3,477
$148,494
Alabama .
962
7
4
380
2
14
1,369
Alaska .
134
1
2
1 19
0
2
257
Arizona .
1,050
25
10
333
7
34
1,457
Arkansas .
534
1
5
329
2
21
892
California .
12,827
346
264
1,446
304
282
15,470
Colorado .
941
12
16
448
1
67
1,485
Connecticut .
988
0
1
477
0
23
1,489
Delaware .
2,061
6
7
92
0
1 1
2,177
District of Columbia .
516
7
30
239
1
57
849
Florida .
5,194
20
117
1,457
1
251
7,039
Georgia .
2,339
44
8
561
7
110
3,069
Hawaii .
20
0
0
4
0
1
25
Idaho .
281
4
0
41
10
3
338
Illinois .
4,815
40
531
1,481
222
276
7,365
Indiana .
1,906
48
12
496
1
51
2,514
Iowa .
632
2
2
422
0
16
1,075
Kansas .
656
7
4
397
0
18
1,082
Kentucky .
980
19
5
306
0
48
1,360
Louisiana .
898
2
21
565
0
41
1,528
Maine .
142
0
0
25
0
3
170
Maryland .
1,881
14
10
527
7
47
2,486
Massachusetts .
3,905
180
805
830
10
42
5,773
Michigan .
2,367
16
57
787
14
39
3,279
Minnesota .
1,922
50
10
521
20
74
2,596
Mississippi .
452
1
5
295
0
14
766
Missouri .
1,469
19
7
613
8
92
2,208
Montana .
177
0
3
55
0
12
247
Nebraska .
782
6
3
255
0
16
1,062
Nevada .
998
0
0
82
0
7
1,087
New Hampshire .
102
0
0
12
0
1
1 15
New Jersey .
3,549
30
68
1,060
7
115
4,829
New Mexico .
375
2
2
156
0
21
556
New York .
21,597
1,229
2,282
2,491
2,057
400
30,057
North Carolina .
2,782
81
92
727
109
184
3,975
North Dakota .
168
1
4
74
0
10
257
Ohio .
5,715
171
42
1,308
3
129
7,367
Oklahoma .
672
1
12
432
1
26
1,144
Oregon .
1,051
73
0
185
8
23
1,341
Pennsylvania .
5,149
217
159
2,325
27
97
7,975
Rhode Island .
497
121
0
121
0
41
780
South Carolina .
1,070
5
2
333
4
40
1,454
South Dakota .
899
8
1
69
0
16
993
Tennessee
1,298
14
16
600
23
32
1,984
Texas .
4,658
12
97
2,537
12
525
7,840
Utah .
466
15
11
125
24
8
649
Vermont .
135
0
0
26
0
1
163
Virginia .
1,402
12
12
310
1
65
1,802
Washington .
1,790
25
1
104
6
19
1,945
West Virginia .
567
0
3
279
0
17
866
Wisconsin .
1,274
19
6
328
1
30
1,658
Wyoming .
74
0
1
65
0
2
141
Puerto Rico .
62
1
2
25
0
4
93
Note: Preliminary year-to-date data. Zeros indicate amounts of less than $500,000.
139
Noninterest income of national banks, by state, December 31 , 1992
(Dollar amounts in millions)
Service
charges on
deposit
accounts
Gains
(losses)
on foreign
exchange
transactions
Gains
(losses)
on fees from
assefs in
trading
accounts
Other
noninterest
income
+
extraordinary
items
Gains
(Losses)
on assets
not in
trading
accounts
Total
noninterest
income and
gains (losses)
on assets not
in trading
accounts
All national banks
$8,760
$1,973
$1,038
$28,177
$2,226
$42,173
Alabama .
91
4
10
182
8
295
Alaska .
18
0
0
37
5
60
Arizona .
144
3
6
300
1 1
465
Arkansas .
61
0
9
102
7
180
California
1,351
171
263
2,934
195
4,914
Colorado .
154
2
5
398
12
572
Connecticut .
118
7
3
276
108
513
Delaware .
6
0
0
1,526
0
1,532
District of Columbia .
68
18
3
191
74
355
Florida
624
9
1
891
83
1,608
Georgia
282
3
10
558
94
946
Hawaii .
1
0
0
2
0
3
Idaho .
26
0
-2
20
0
44
Illinois .
400
124
95
1,017
130
1,765
Indiana
137
1
3
341
12
494
Iowa .
54
0
0
177
30
261
Kansas .
66
0
1
108
9
184
Kentucky .
73
0
0
124
9
206
Louisiana
135
0
9
186
32
363
Maine .
9
0
0
24
1
34
Maryland .
198
4
0
293
85
580
Massachusetts .
168
47
22
772
140
1,149
Michigan .
193
12
12
383
23
624
Minnesota .
162
9
5
692
54
922
Mississippi .
53
0
2
68
4
127
Missouri .
168
8
36
347
27
587
Montana .
14
0
0
33
1
48
Nebraska .
52
0
0
225
6
284
Nevada .
30
0
0
549
1
580
New Hampshire .
2
0
0
4
1
7
New Jersey .
324
5
13
493
95
929
New Mexico .
40
0
0
53
20
113
New York
554
1,429
344
5,545
295
8,167
North Carolina .
272
26
-1
673
27
998
North Dakota .
12
0
0
21
1
34
Ohio .
366
12
8
1,408
63
1,857
Oklahoma .
98
2
10
166
10
285
Oregon .
140
1
12
329
1
483
Pennsylvania .
467
34
8
1,328
309
2,146
Rhode Island .
24
0
0
526
28
579
South Carolina .
108
1
3
145
10
267
South Dakota .
15
0
0
1,782
4
1,801
Tennessee .
158
1
107
258
12
536
Texas .
820
18
20
1,431
128
2,418
Utah
58
0
1
105
1
165
Vermont
7
0
0
17
2
27
Virginia .
109
0
5
416
45
574
Washington .
189
17
9
360
1
576
West Virginia
29
0
0
64
5
98
Wisconsin
98
3
2
281
6
390
Wyoming
8
0
0
10
1
19
Puerto Rico
3
0
0
3
1
7
Note Preliminary year-to-date data Zeros indicate amounts of less than $500,000
140
Interest expense of national banks, by state, December 31, 1992
(Dollar amounts in millions)
Interest
on
deposits
Expense of
federal
funds
transactions
Interest on
Treasury
demand notes
and
other borrowed
money
Interest
on
mortgage
and
capitalized
leases
Interest
on
subordinated
notes
and
debentures
Total
interest
expense
All national banks
$57,056
$5,421
$8,380
$98
$1,193
$72,148
Alabama .
527
63
7
0
1
597
Alaska .
65
15
0
0
0
81
Arizona .
482
12
66
0
2
563
Arkansas .
375
7
1
1
0
384
California .
4,952
303
524
15
196
5,990
Colorado .
522
26
1
3
2
554
Connecticut .
545
58
15
1
3
622
Delaware .
419
138
213
2
22
795
District of Columbia .
391
24
8
0
1
424
Florida .
2,610
220
69
4
15
2,918
Georgia .
1,092
207
18
2
9
1,328
Hawaii .
9
0
0
0
0
9
Idaho .
127
13
1
0
0
142
Illinois .
3,192
345
216
1
114
3,868
Indiana .
962
95
19
2
0
1,077
Iowa .
424
42
26
1
1
494
Kansas .
462
23
1
0
0
487
Kentucky .
546
72
7
1
0
626
Louisiana .
567
41
3
1
1
612
Maine .
80
3
3
0
0
86
Maryland .
825
113
194
1
9
1,142
Massachusetts .
2,829
188
923
1
17
3,958
Michigan .
1,333
119
67
3
7
1,529
Minnesota .
835
167
47
2
19
1,071
Mississippi .
316
30
1
0
0
347
Missouri .
890
106
28
7
0
1,031
Montana .
86
4
0
0
1
91
Nebraska .
420
19
2
2
1
445
Nevada .
146
34
1
0
0
182
New Hampshire .
33
0
4
0
0
38
New Jersey .
1,980
76
15
2
26
2,100
New Mexico .
237
10
1
0
0
249
New York .
13,344
723
5,137
18
519
19,741
North Carolina .
1,252
618
92
5
34
2,002
North Dakota .
121
1
0
0
1
123
Ohio .
2,376
334
104
4
31
2,850
Oklahoma .
480
14
7
0
0
502
Oregon .
373
38
68
1
2
481
Pennsylvania .
3,003
337
252
4
69
3,665
Rhode Island .
367
38
23
0
6
434
South Carolina .
466
148
8
1
5
627
South Dakota .
387
45
42
0
4
478
Tennessee .
769
78
12
1
9
868
Texas .
3,094
238
89
6
39
3,465
Utah .
224
35
8
0
1
269
Vermont .
72
3
1
0
0
75
Virginia .
774
59
9
0
3
846
Washington .
614
43
35
4
16
714
West Virginia .
355
25
3
0
0
384
Wisconsin .
614
67
4
1
3
689
Wyoming .
57
2
0
0
0
59
Puerto Rico .
36
0
0
0
2
38
Note: Preliminary year-to-date data. Zeros indicate amounts of less than $500,000.
141
Noninterest and other expense of national banks, by state, December 31, 1992
(Dollar amounts in millions)
Provision
for loan
and
lease
losses
Provision
for
allocated
transfer
risk
Salaries
and
employee
benefits
Expenses of
premises
and
fixed
assets
Applicable
Income
taxes
Other
noninterest
expense
Total
noninterest
and
other
expense
All national banks
$15,392
-$62
$31,433
$10,615
$8,039
$35,716
$101,133
Alabama .
71
0
306
97
92
268
834
Alaska .
5
0
71
23
31
38
167
Arizona .
174
0
425
110
93
408
1,21 1
Arkansas .
25
0
194
53
66
186
525
California .
2,531
-78
3,806
1,413
1,272
3,901
12,846
Colorado .
57
0
420
142
67
582
1,268
Connecticut .
174
0
383
130
66
547
1,300
Delaware
584
0
374
93
279
1,120
2,450
District of Columbia .
165
0
195
85
-44
379
780
Florida .
504
0
1,379
610
391
1,990
4,875
Georgia .
257
14
633
218
222
815
2,158
Hawaii .
0
0
7
4
1
5
17
Idaho .
19
0
53
15
26
84
197
Illinois .
1,096
1
1,562
509
60
1,498
4,727
Indiana .
219
0
498
155
174
531
1,576
Iowa .
54
0
208
68
82
242
654
Kansas .
47
0
211
53
72
228
61 1
Kentucky .
89
0
259
78
59
270
755
Louisiana .
112
0
359
108
85
389
1,053
Maine .
12
0
36
13
3
47
111
Maryland .
392
1
559
171
82
554
1,759
Massachusetts .
183
0
870
289
232
930
2,504
Michigan .
211
0
737
201
148
645
1,943
Minnesota .
182
0
539
187
222
736
1,866
Mississippi .
45
0
163
46
41
135
431
Missouri .
128
0
495
153
160
481
1,416
Montana .
19
0
45
15
17
67
164
Nebraska .
80
0
211
69
86
266
71 1
Nevada
232
0
106
41
187
554
1,120
New Hampshire .
37
0
11
3
0
31
81
New Jersey .
506
0
983
362
170
1,216
3,236
New Mexico .
53
0
132
44
21
1 19
368
New York .
4,063
0
6,025
2,122
554
4,826
17,590
North Carolina .
108
0
771
254
270
914
2,318
North Dakota .
1 1
0
50
15
11
47
135
Ohio .
719
0
1,292
364
609
1,996
4,980
Oklahoma .
29
0
300
78
69
267
743
Oregon
124
0
386
101
134
324
1,069
Pennsylvania .
525
0
1,665
594
598
1,694
5,075
Rhode Island .
115
0
161
32
82
420
809
South Carolina . . , .
120
0
298
103
86
337
943
South Dakota .
327
0
189
51
229
1,128
1,924
Tennessee .
152
0
496
130
1 19
469
1,366
Texas .
245
0
1,978
706
346
2,104
5,379
Utah .
37
0
129
32
53
192
442
Vermont .
14
0
37
12
5
35
102
Virginia .
276
0
385
142
41
609
1,452
Washington .
138
0
476
150
188
501
1,453
West Virginia
33
0
162
43
60
141
439
Wisconsin .
83
0
359
115
117
392
1,066
Wyoming .
6
0
28
8
6
38
87
Puerto Rico
7
0
14
5
3
17
46
Note Preliminary year-to-date data Zeros Indicate amounts of less than $500,000
142
Book value of securities at domestic offices of national banks, by state, December 31 , 1992*
(Dollar amounts in millions)
U.S.
Treasury
securities
U.S.
government
issued or
guaranteed
certificates of
participation
Other U.S.
government
agency
and
corporation
obligations
Securities
issued by
states and
political
subdivisions
in the U.S.
Other
domestic
debt
securities
Foreign
debt
securities
Equity
securities
All national banks
$127,461
$94,033
$102,800
$31,672
$26,930
$12,044
$7,153
Alabama .
547
1,289
2,133
896
307
16
47
Alaska .
800
46
357
175
284
0
7
Arizona .
2,209
291
2,489
54
492
1
35
Arkansas .
1,791
461
1,857
626
202
1
42
California .
2,981
8,038
5,580
817
502
806
567
Colorado .
1,915
2,295
1,792
392
160
0
79
Connecticut .
1,990
3,532
462
14
557
7
41
Delaware .
737
99
197
9
240
0
35
District of Columbia .
1,505
376
1,615
120
237
43
29
Florida .
9,849
3,547
5,859
1,891
2,917
427
310
Georgia .
3,002
1,518
2,332
724
464
3
76
Hawaii .
9
3
31
2
0
0
1
Idaho .
151
69
230
60
95
0
17
Illinois .
6,415
2,757
5,951
3,006
2,293
326
575
Indiana .
1,899
1,625
2,306
1,017
554
2
77
Iowa .
1,070
1,518
1,381
642
154
0
57
Kansas .
1,338
1,581
1,955
651
64
0
52
Kentucky .
1,931
441
1,216
854
222
0
51
Louisiana .
3,756
2,861
1,632
254
330
10
41
Maine .
162
68
84
22
31
0
6
Maryland .
2,620
1,254
3,906
614
190
3
64
Massachusetts .
1,896
3,658
1,502
87
538
556
176
Michigan .
2,004
4,769
2,066
1,489
645
47
108
Minnesota .
1,947
4,130
892
777
678
7
133
Mississippi .
1,259
485
1,507
465
236
1
27
Missouri .
5,31 1
1,587
1,815
847
526
4
59
Montana .
212
339
131
44
6
0
13
Nebraska .
1,383
567
862
491
99
0
62
Nevada .
634
243
328
44
173
0
8
New Hampshire .
101
15
27
18
24
1
7
New Jersey .
5,009
2,692
6,132
1,080
680
54
226
New Mexico .
727
786
670
207
20
0
58
New York .
8,893
8,327
2,569
1,496
1,229
9,283
2,112
North Carolina .
7,422
1,335
399
1,315
298
131
57
North Dakota .
212
433
217
69
24
0
14
Ohio .
6,236
2,718
5,769
2,541
2,365
19
169
Oklahoma .
3,189
1,328
1,870
511
172
1
83
Oregon .
904
649
924
306
85
2
18
Pennsylvania .
7,742
1 1 ,004
10,837
1,963
3,443
210
347
Rhode Island .
538
849
53
12
56
2
36
South Carolina .
2,322
937
1,129
298
76
2
83
South Dakota .
136
493
64
95
43
0
50
Tennessee .
2,016
1,271
4,911
838
316
2
62
Texas .
14,219
8,653
9,927
1,167
3,699
63
401
Utah .
419
167
883
187
206
0
164
Vermont .
130
107
89
21
11
0
10
Virginia .
2,594
690
790
409
272
1
58
Washington .
427
390
358
202
1 15
2
107
West Virginia .
1,097
424
1,656
557
61
0
71
Wisconsin .
1,337
970
816
1,196
433
8
212
Wyoming .
410
199
200
57
58
0
12
Puerto Rico .
60
147
43
44
45
0
5
‘Excludes assets held in trading accounts.
Note: Preliminary end-of-quarter data. Zeros indicate amounts of less than $500,000
143
Selected off-balance sheet items at national banks, by state, December 31 , 1992
(Dollar amounts in millions)
Unused
commitments
Letters
of
credit
Securities
lent
Mortgages
transferred
to FNMA and
FHLMC
with recourse
Notional
value of
swap
contracts
When-issued
securities
and futures
and
forward
contracts
Written and
purchased
option
contracts
All national banks
$796,205
$126,196
$13,908
$7,805
$1,104,760
$2,659,075
$663,220
Alabama
4,439
771
43
8
1,668
376
1,178
Alaska .
544
26
27
0
52
71
0
Arizona .
25,103
225
2
23
808
1,384
38
Arkansas .
1,116
71
0
122
0
75
50
California .
93,695
18,578
3,515
140
222,266
504,907
84,930
Colorado .
7,002
276
1
0
2,433
108
38
Connecticut .
4,757
793
0
1
2,322
3,261
1,240
Delaware .
1 15,015
6
0
0
8,234
0
0
District of Columbia .
1,744
301
0
0
554
970
72
Florida .
18,350
2,606
8
347
4,302
3,319
4,260
Georgia .
20,113
2,341
13
47
7,217
1,146
1,608
Hawaii .
66
3
0
0
0
0
0
Idaho .
1,085
40
0
0
422
860
7
Illinois .
53,482
10,894
58
1 1
142,984
313,794
146,462
Indiana .
10,171
1,008
780
13
3,635
390
285
Iowa .
7,186
231
172
0
34
8
0
Kansas .
2,51 1
123
0
22
1
9
0
Kentucky .
2,694
434
103
1 1
669
2
40
Louisiana .
3,170
298
0
65
1 13
132
365
Maine .
340
26
0
0
144
0
90
Maryland .
12,757
1,096
104
65
3,368
1,201
1,318
Massachusetts .
18,561
3,271
26
99
12,400
38,179
13,942
Michigan .
11,71 1
1,746
0
207
4,466
3,213
370
Minnesota .
9,902
2,608
283
58
3,526
3,945
3,634
Mississippi .
1,282
104
152
0
5
398
10
Missouri .
7,879
1,354
180
0
1,128
1,147
72
Montana .
840
62
3
0
177
0
0
Nebraska
7,175
134
27
0
25
8
106
Nevada .
933
48
0
0
3,101
3,135
13,002
New Hampshire .
773
2
0
0
0
0
70
New Jersey .
10,928
1,179
0
3
6,610
3,064
288
New Mexico .
982
40
0
16
225
2
0
New York
95,292
48,646
1,117
5,588
553,811
1 ,690,355
351,492
North Carolina .
21,614
4,166
0
51
16,058
36,291
11,245
North Dakota .
466
19
41
0
102
1
0
Ohio .
51,407
4,325
0
184
31,960
5,930
5,106
Oklahoma
2,172
274
0
40
22
65
3
Oregon .
8,728
513
0
6
1,821
310
2,105
Pennsylvania .
29,828
8,420
997
482
30,503
14,803
3,697
Rhode Island .
3,910
379
0
0
3,532
232
264
South Carolina .
2,826
248
121
7
231
85
15
South Dakota .
55,308
42
0
0
3,195
3,088
1 1 ,000
Tennessee .
6,153
703
520
41
661
1,228
206
Texas .
29,156
3,887
5,503
85
15,094
9,243
3,069
Utah .
2,387
222
0
0
162
1,546
410
Vermont .
368
31
0
0
45
21
10
Virginia
6,539
1,078
49
10
760
683
235
Washington .
15,546
1,763
15
0
9,185
9,982
379
West Virginia .
970
95
47
0
50
1
0
Wisconsin .
6,954
670
0
52
4,677
103
514
Wyoming .
152
13
4
0
0
1
0
Puerto Rico
120
4
0
0
0
0
0
Swap futures and forward, and option contracts include interest rate, foreign exchange, and commodities and equities contracts
Note Preliminary end-of-quarter data Zeros indicate amounts of less than $500,000
144
Outstanding balances, credit cards and related plans of national banks, by state, December 31, 1992
(Dollar amounts in thousands)
Total
Credit cards and other
related credit plans
number of
national banks
Number of
national banks
Outstanding
volume
All national banks
3,592
2,228
$77,566,847
Alabama .
50
28
537,158
Alaska .
4
3
50,507
Arizona .
14
13
2,565,929
Arkansas .
78
27
202,645
California .
150
138
12,445,684
Colorado .
182
158
1,446,422
Connecticut .
13
10
137,416
Delaware .
14
14
15,939,501
District of Columbia .
20
17
151,819
Florida .
148
84
1 ,982,384
Georgia .
77
56
2,969,931
Hawaii .
2
1
3,638
Idaho .
6
6
125,474
Illinois .
315
186
1,009,210
Indiana .
75
68
1,187,105
90
60
759,421
Kansas .
145
49
336,915
Kentucky .
83
45
196,41 1
Louisiana .
42
21
487,01 1
Maine .
7
6
38,178
Maryland .
27
22
2,084,309
Massachusetts .
25
17
289,900
Michigan .
54
42
571,862
Minnesota .
150
116
653,293
Mississippi .
27
13
109,638
Missouri .
81
56
480,007
Montana .
36
25
287,431
Nebraska .
107
48
1,707,658
Nevada .
6
4
3,583,009
New Hampshire .
6
4
360,687
New Jersey .
46
39
731,194
New Mexico .
36
20
193,279
New York .
82
57
5,551,720
North Carolina .
15
15
406,232
North Dakota .
29
22
99,168
124
100
6,159,042
Oklahoma .
149
64
84,977
Oregon .
Pennsylvania .
7
145
7
93
1,467,412
803,905
Rhode Island .
3
2
139,017
South Carolina .
27
27
212,367
South Dakota .
20
13
3,674,224
Tennessee .
45
24
718,337
Texas .
560
208
869,788
Utah .
7
6
191,755
Vermont .
9
7
58,248
Virginia .
42
26
460,467
Washington .
23
19
1,966,410
West Virginia .
68
30
110,162
Wisconsin .
93
88
938,157
Wyoming .
27
23
12,513
Puerto Rico .
1
1
17,920
Note: Preliminary end-of-quarter data.
145
Consolidated foreign and domestic loans and leases past due at national banks, by state, December 31, 1992
(Dollar amounts in millions)
Number
of
banks
Type of loan
All real
estate
Commercial and
Industrial 1
Personal2
Leases
Other
loans3
Total
loans
To non -US.
addresses
All national banks
3,592
$12,461 9
$4,541.4
$7,481.1
$306. 1
$1,019.8
$25,810.3
$776.6
Alabama .
50
65
29
63
0
4
161
0
Alaska .
4
14
7
4
0
0
27
0
Arizona .
14
85
18
168
2
4
278
0
Arkansas .
78
51
22
24
0
1
98
0
California
150
2,507
575
904
25
1 16
4,127
120
Colorado
182
51
55
45
4
2
156
0
Connecticut
13
239
65
56
0
12
372
0
Delaware .
14
10
5
570
2
0
586
0
District of Columbia .
20
120
56
1 1
2
4
193
10
Florida .
148
583
69
145
2
12
810
1
Georgia .
77
139
116
137
14
14
419
0
Hawaii .
2
1
2
0
0
0
3
0
Idaho .
6
24
1 1
16
0
3
54
0
Illinois .
315
470
287
152
1
47
957
0
Indiana .
75
169
100
181
4
4
458
0
Iowa .
90
30
29
51
0
3
1 13
0
Kansas .
145
51
35
23
1
1
1 10
0
Kentucky .
83
73
41
46
4
3
167
0
Louisiana .
42
54
35
70
1
2
162
0
Maine .
7
32
4
5
0
0
41
0
Maryland .
27
183
31
138
A
1
4
356
5
Massachusetts .
25
521
128
65
5
7
725
22
Michigan .
54
200
117
94
4
3
418
0
Minnesota .
150
145
164
70
10
15
403
0
Mississippi .
27
36
15
23
0
1
75
0
Missouri .
81
179
87
52
1
45
362
0
Montana .
36
9
17
16
0
1
43
0
Nebraska .
107
20
25
74
0
6
125
0
Nevada .
6
31
16
230
0
0
277
0
New Hampshire .
6
4
3
12
0
0
19
0
New Jersey .
46
1,259
419
186
8
37
1,908
2
New Mexico .
36
37
18
21
0
1
78
0
New York .
82
2,244
551
1,309
68
468
4,641
603
North Carolina
15
153
90
48
1
6
297
0
North Dakota .
29
14
1 1
9
0
2
36
0
Ohio .
124
395
219
533
17
26
1,190
5
Oklahoma
149
49
33
27
0
2
111
0
Oregon .
7
73
15
53
22
2
165
0
Pennsylvania
145
857
310
350
35
44
1,596
2
Rhode Island .
3
123
30
18
59
3
232
0
South Carolina .
27
121
24
41
1
2
188
0
South Dakota
20
6
31
803
1
7
848
0
Tennessee .
45
98
38
79
2
5
222
0
Texas .
560
403
216
228
0
25
872
6
Utah .
7
28
19
18
1
3
67
0
Vermont .
9
26
9
5
0
0
40
0
Virginia .
42
129
54
80
1
3
267
0
Washington
23
201
210
100
3
70
584
0
West Virginia
68
58
19
45
0
0
123
0
Wisconsin
93
79
54
80
4
0
218
0
Wyoming
27
5
7
4
0
0
17
0
Puerto Rico
1
9
1
3
0
0
14
0
'For banks with assets of less than $300 million, this category captures commercial (time and demand) and all other loans
2 For banks with assets of less than $300 million, this category captures installment loans and credit cards and related plans,
3Does not include banks with assets of less than $300 million
Mote Preliminary endof-quarter data Zeros indicate amounts of less than $500,000
146
Percent of loans past due, by asset size of national banks 1
Real estate
March 1992 .
June 1992 .
September 1992 . .
December 1992 ....
Commercial and industrial
March 1992 .
June 1992 .
September 1992 ....
December 1992 ....
- * -
Personal
March 1992 .
June 1992 .
September 1992 ...
December 1992 ....
Leases
March 1992
June 1992 .
September 1992 ....
December 1992 ....
Other loans
March 1992 .
June 1992 .
September 1992 ....
December 1992 ....
Total loans
March 1992 .
June 1992 .
September 1992 ....
December 1992 ....
Less $300M
than to
$1B
to
Greater All
than national
$300M
$1B
$10B
$ lOB
banks
2.38
1.92
1.84
1.85
2.28
1.85
1.99
1 80
3.09
2.74
2.59
2.38
3 27
2 86
2 77
2 91
2 99
2.59
2.51
2.50
4 86
4 00
3.76
3.27
2 81
2 36
2 47
1.86
2.10
1.74
1.83
1 46
1.11
0 95
0.94
1 08
1.73
1.46
1.45
1.37
2 57
2 42
2.42
2 50
2 61
2 44
2 46
2.39
4.04
3.73
3 87
3 82
3.53
3.30
3 24
3 23
3.54
3.30
3.33
3.30
2.54
1.99
2 26
1.97
1.57
1.13
1.20
0.97
2.23
1 74
1.91
1 95
0 87
0 98
0 99
0 99
1.33
1.25
1 30
1.29
0 01
0.03
0.02
0.01
0.83
0.93
0.85
0.67
1.22
0.79
0.88
0 83
0 67
0.56
0.93
1.06
0.76
0.59
0 84
0.91
2.72
2.26
2.16
2.09
2.37
2.04
2 14
1.90
2 93
2.58
2.60
2.42
2.20
1 94
1.96
2.08
2 49
2.18
2 18
2.16
'Past due loans in each category are stated as a percentage of loans outstanding of that type
2For banks with assets of less than $300 million, this category captures commercial (time and demand) and all other loans.
3For banks with assets of less than $300 million, this category captures installment loans and credit cards and related plans.
Note: Preliminary end-of-quarter data
147
Index — 1992
Adjustable rate mortgage loans and prime rate as
index, interpretive letter: IV, 66-67
Advertisement guidelines for mutual funds, investment
securities letter: II, 54
American Land Title Ass’n v. Clarke: III, 19; I, 22-23
Applications for federal branches of foreign banks:
January 1 -June 30, 1992: 111,119
July 1-December 31, 1992: I, 131
Applications for national bank charters:
January 1-June30, 1992: III, 110
July 1-December 31, 1992: 1,123
Applications for new national bank charters, approved
and rejected by states:
January 1 -June 30, 1992: 111,111
July 1-December 31, 1992: I, 124
Appraisal regulation, no objection letters:
appraisal reviews performed by lending officers: IV,
89-90
construction loans: IV, 85-87
government guaranteed loans: IV, 79-80
loans reviewed prior to maturity: IV, 87-89
questions and answers to: IV, 82-83
residential mortgage warehousing loans: IV, 83-85
updated appraisals, appraisal reviews and OREO
appraisals: IV, 80-82
Appraisal requirements, implementation of, testimony:
IV, 35-37
Assets, liabilities, and capital accounts of national banks:
March 31, 1991, and March 31, 1992: II, 101
June 30, 1991, and June 30, 1992: III, 123
September 30, 1991, and September 30, 1992: IV, 97
December 31,1 991 , and December 31 , 1 992: I, 1 35
Bank credit, availability of, testimony: IV, 29-34
Bank directors, duties of, investment securities letter:
II, 51
Bank failures:
January 1 -June 30, 1992: 111,11-12
July 1-December 31, 1992: I, 49-50
Bank failures, effect on deposit insurance fund, tes¬
timony: I, 57
Bank regulations, testimony: III, 37
Bond trusteeships, trust interpretation: III, 104
Book value of securities at national banks:
March 31, 1992: II, 109
June 30, 1992: III, 131
September 30, 1992: IV, 105
December 31, 1992: I, 143
Note: This index covers material found in volume 1 1, numbers ll-IV
and volume 12, number I of the Quarterly Journal.
Branch banking, interpretive letters: III, 87-89; 91-92; I,
77-80
Brokerage services to corporate deposit customers, in¬
terpretive letters: IV, 61-63; 64
Capital, regulatory, requirements for securitized assets,
interpretive letter: III, 92-94
Change in Bank Control Act, annual report to Con¬
gress, 1992: 1,45
Change in Bank Control Act, investment securities letter:
II, 46-48
Changes in the structure of the national banking sys¬
tem, by states:
January 1-June30, 1992: III, 109
January 1-December 31, 1992: I, 101
Citizenship requirements for national bank directors, in¬
vestment securities letter: II, 49
Clarke, Robert L.:
speeches: II, 19-22
testimony: II, 17-18
Collateralized mortgage obligations, trust interpretation:
I, 82-83
Collective investment funds:
disclosure issues, investment securities letter: III, 94-
96
guaranteed investment contracts, trust interpreta¬
tions: III, 103-104; I, 80
request to establish, interpretive letter: I, 74-76
trust interpretations: II, 54-56; III, 102-103
valuation methods, investment securities letter: II, 50-
SI
Commercial real estate lending, OCC examination of,
testimony: II, 17-18; IV, 17-20
Common trust funds as collective investments, invest¬
ment securities letter: II, 42-43
Community Development Corporations (CDCs), inter¬
pretive letter: IV, 77-79
Community Reinvestment Act, annual report to Con¬
gress, 1992: I, 41
Community Reinvestment Act, corporate decisions
relating to:
January 1-March 31, 1992: II, 12-13
April 1-June30, 1992: III, 17-18
July 1 -September 30, 1992: IV, 12-13
October 1-December 31, 1992: 1, 48
Comptroller’s report of operations, 1992: I, 11-38
administration, 29-34
bank supervision operations, 15-16
bank supervision policy, 12-15
Comptrollers of the Currency, 1 863 to the present, 35
corporate policy and economic analysis, 18-22
law department, 22-29
149
legislative and public affairs, 16-18
organization chart, 38
Senior Deputy and Deputy Comptrollers of the Cur¬
rency, 1 863 to the present, 36-37
Coonley, Donald G.: IV, 29-37
Consumer complaints, annual report to Congress,
1992:1,43
Corporate applications filed with the OCC in 1992: I,
19
Corporate decisions of the OCC:
January 1 -March 31, 1992: 11,11-13
April 1-June 30, 1992: III, 17-18
July 1 -September 30, 1992: IV, 11-13
October 1-December 31, 1992: I, 47-48
Credit card loans, transfer among affiliates, no objec¬
tion letter: II, 38-41
Credit cards and related plans of national banks:
March 31, 1992: II, 111
June 30, 1992: III, 133
September 30, 1992: IV, 107
December 31 , 1 992: 1, 1 45
Deposits of national banks:
March 31, 1992: II: 104
June 30, 1992: III, 126
September 30, 1992: IV, 100
December 31, 1992: I, 138
Debts Previously Contracted (DPC), interpretive letters:
IV, 63-64; I, 67
Employee Retirement Security Act (ERISA):
interpretive letter: I, 70-74
trust interpretation: IV, 92-93
Employee stock option plan:
investment securities letter: III, 98-102
interpretive letter: IV, 68-73
Enforcement actions relating to national banks:
activities of OCC's Enforcement and Compliance
Division: I, 24-25
enforcement cases: III, 13-15; I, 51-53
cease and desist orders:
January 1-June 30, 1992: III, 13
July 1-December 31, 1992: I, 51
civil money penalties:
January 1-June 30, 1992: III, 13
July 1-December 31, 1992: I, 51
commitment letters:
January 1-June 30, 1992: III, 12
July 1-December 31, 1992: I, 50
formal agreements:
January 1-June 30, 1992: III, 13
July 1-December 31, 1992: I, 51
memorandums of understanding:
January 1-June 30, 1992: III, 12
July 1-December 31, 1992: I, 50
removal orders:
January 1-June 30, 1992: III, 13
July 1-December 31, 1992: I, 51
Equal opportunity employment at OCC, testimony: III,
23-26
Equity securities, investment securities letter: II, 48-49
Federal branches and agencies of foreign banks:
January 1-June 30, 1992:
applications: III, 119
in operation: III, 1 19
July 1-December 31 , 1992:
applications: I, 131
in operation: I, 131
supervision of: III, 45-47; I, 14-15
Federal branches of foreign banks and Illinois law, in¬
terpretive letter: IV, 59-61
Federal Deposit Insurance Corporation Improvement
Act of 1991 (FDICIA):
speeches: II, 19-22; III, 37-39; 45-47; I, 61-63
testimonies: III, 29-30; 41-44
Federal Home Loan Bank, membership and stock pur¬
chase requirements, interpretive letter: III, 86-87
FHA-insured loans, authority to purchase, interpretive
letter: III, 84-86
Fiduciary services through an operating subsidiary, in¬
terpretive letter: IV, 65
Financial statements of the OCC, 1991: II, 87-97
First National Bank of Bellaire v. Office of the Comp¬
troller of the Currency: I, 23
First Nat’l Bank of Chicago v. Comptroller of the Cur¬
rency: III, 19; I, 23
First Nat’l Bank of Council Bluffs, Iowa v. OCC: III, 20; I,
23
Foreign and domestic loans and leases past due at na¬
tional banks:
March 31, 1992: II, 112
June 30, 1992: III, 134
September 30, 1992: IV, 108
December 31, 1992: I, 146
Foreign banks operating in the U.S., speech: III, 45-47
Freddie Mac preferred stock, interpretive letter: III, 82-
83
Glass-Steagall Act, interpretive letter: IV, 61-62
Golden Pacific Bancorp v. U.S.: III, 20; I, 23
Guaranteed Investment Contracts, trust interpretations:
III, 103-104; IV, 91-92; I, 80-82
Home Mortgage Disclosure Act, testimony: III, 49-55
150
Illinois law and federal branches of foreign banks, inter¬
pretive letter: IV, 59-61
Income and expenses of national banks:
March 31, 1992: II, 102
June 30, 1992: III, 124
September 30, 1992: IV, 98
December 31 , 1 992: 1, 1 36
Independent Ins. Agents of America v. Clarke: III, 19; I,
22
Information statements for mergers, investment securities
letter: III, 96-98
Insider lending, investment securities letter: II, 51-54
Insurance for workers’ compensation coverage, inter¬
pretive letter: IV, 58-59
Insurance policy acquired DPC, interpretive letter: IV,
63-64
Interest expense of national banks:
March 31, 1992: II, 107
June 30, 1992: III, 129
September 30, 1992: IV, 103
December 31, 1991: I, 141
Interest income of national banks:
March 31, 1992: II, 105
June 30, 1992: III, 127
September 30, 1992: IV, 101
December 31, 1992: I, 139
International Banking Act, interpretive letters: IV, 59-61;
67-68
Interpretations:
January 1-March 31, 1992: II, 23-56
April 1-June 30, 1992: III, 73-105
July 1 -September 30, 1992: IV, 53-93
October 1 -December 31, 1992: I, 65-83
Krause, Susan F.: Ill, 49-55
Lease financing, interpretive letter: II, 25-26
Lending limits, interpretive letters:
application to a federal savings bank: IV, 55-56
application to limited liability companies: IV, 75-77
Lerch v. First Citizens BanCorp: I, 23
Loans of national banks:
March 31, 1992: II, 103
June 30, 1992: III, 125
September 30, 1992: IV, 99
December 31 , 1 992: 1, 1 37
Meraer/reorqanization, investment securities letter: II,
41-42
Mergers:
involving a single operating bank:
January 1-June 30, 1992: 111,117
July 1-December 31 , 1992: I, 130
involving national banks and savings and loans:
January 1-March 31, 1992: II, 73-80
April 1-June 30, 1992: III, 71-72
July 1 -September 30, 1992: IV, 50-51
October 1-December 31, 1992: I, 97-98
January 1-December 31 , 1992: I, 118-122
involving two or more operating banks:
January 1-March 31, 1992: II, 63-73
April 1-June 30, 1992: III, 61-71
July 1 -September 30, 1992: IV, 43-50
October 1-December 31, 1992: I, 89-96
January 1-December 31 , 1992: I, 102-117
Mid-State Federal Savings Bank v. First Florida Banks,
Inc.: I, 23
Minority shareholders, investment securities letter: II,
41
National banks:
applications for charters, approved and rejected by
states:
January 1-June 30, 1992: III, 1 10
July 1-December 31, 1992: 1,124
assets, liabilities, and capital accounts:
March 31, 1991, and March 31, 1992: II, 101
June 30, 1991, and June 30, 1992: III, 123
September 30, 1991, and September 30, 1992: IV, 97
December 31 , 1991, and December 31 , 1 992: 1, 1 35
book value of securities:
March 31, 1992: II, 109
June 30, 1992: III, 131
September 30, 1992: IV, 105
December 31, 1992: 1,143
changes in structure:
January 1-June 30, 1992: III, 109
January 1-December 31, 1992: I, 101
charters issued:
January 1-June 30, 1992: 111,112
July 1-December 31, 1992: I, 125
condition statistics by asset size of bank:
March 31, 1992: II, 6
June 30, 1992: 111,6
September 30, 1992: IV, 7
December 31, 1992: I, 7
condition statistics by OCC district:
March 31, 1992: II, 8
June 30, 1992: 111,8
September 30, 1992: IV, 9
December 31, 1992: 1,9
condition statistics by years:
March 31, 1987 to March 31, 1992: II, 4
June 30, 1987 to June 30, 1992: 111,4
September 30, 1987 to September 30, 1992: IV, 5
December 31, 1987 to December 31, 1992: 1,5
converted to state banks:
January 1-June 30, 1992: III, 115
July 1-December 31, 1992: I, 127
151
credit cards and related plans:
March 31, 1992: II, 111
June 30, 1992: III, 133
September 30, 1992: IV, 107
December 31, 1992: 1,145
deposits:
March 30, 1992: II, 104
June 30, 1992: III, 126
September 30, 1992: IV, 100
December 31, 1992: 1,138
financial condition of the system, testimony: III, 30-35
income and expenses:
March 31, 1992: II, 102
June 30, 1992: III, 124
September 30, 1992: IV, 98
December 31, 1992: 1,136
interest expense:
March 31, 1992: II, 107
June 30, 1992: III, 129
September 30, 1991: IV, 103
December 31, 1992: I, 141
interest income:
March 31, 1992: II, 105
June 30, 1992: III, 127
September 30, 1992: IV, 101
December 31 , 1 992: 1, 1 39
liquidated under emergency procedures:
January 1-June 30, 1992: III, 118
July 1-December 31, 1992: I, 129
liquidated voluntarily:
January 1-June 30, 1992: III, 118
July 1-December 31, 1992: 1, 129
loans:
March 31, 1992: II, 103
June 30, 1992: III, 125
September 30, 1992: IV, 99
December 31, 1992: 1,137
merged into state banks:
January 1-June 30, 1992: 111,116
July 1-December 31, 1992: I, 128
mergers:
involving a single operating bank:
January 1-June 30, 1992: 111,117
July 1-December 31, 1992: I, 130
involving national banks and savings and loans:
January 1-March 31, 1992: II, 73-80
April 1-June 30, 1992: III, 71-72
July 1 -September 30, 1992: IV, 50-51
October 1-December 31, 1992: I, 97-98
January 1-December 31, 1992: I, 118-122
involving two or more operating banks:
January 1 -March 31, 1992: II, 63-73
April 1-June 30, 1992: III, 61-71
July 1 -September 30, 1992: IV, 43-50
October 1-December 31, 1992: I, 89-96
January 1-December 31, 1992: I, 102-117
noninterest and other expense:
March 31, 1992: II, 108
June 30, 1992: III, 130
September 30, 1992: IV, 104
December 31, 1992: 1,142
noninterest income:
March 31, 1992: II, 106
June 30, 1992: III, 128
September 30, 1992: IV, 102
December 31, 1992: 1,140
off-balance sheet items:
March 31, 1992: II, 110
June 30, 1992: III, 132
September 30, 1992: IV, 108
December 31, 1992: 1,144
operations:
January 1-March 30, 1992: II, 1-9
April 1-June 30, 1992: III, 1-9
July 1 -September 30, 1992: IV, 1-10
October 1-December 31, 1992: I, 1-10
past due loans and leases:
March 31, 1992: II, 112
June 30, 1992: III, 134
September 30, 1992: IV, 106
December 31, 1992: 1,146
percent of total loans past due, by asset size of bank:
II, 113
III, 135
IV, 109
I, 147
performance statistics by asset size of bank:
March 31, 1992: II, 5
June 30, 1992: III, 5
September 30, 1992: IV, 6
December 31, 1992: I, 6
performance statistics by OCC district:
March 31, 1992: II, 7
June 30, 1992: III, 7
September 30, 1992: IV, 8
December 31, 1992: I, 8
performance statistics by year:
March 31, 1987 to March 31, 1992: 11,3
June 30, 1987 to June 30, 1992: 111,3
September 30, 1987 to September 30, 1992: IV, 4
December 31,1 987 to December 31,1 992: I, 4
regulatory burdens, testimony: III, 41-44
regulatory environment:
speech: IV, 21-23
testimony: IV, 29-34
supervision and condition of, testimony: III, 27-35
New Jersey Consumer Checking Act, interpretive letter:
II, 29-35
No objection letters: II, 38-41; IV, 79-90
Nodak Bankcorporation v. Clarke: I, 24
Nonpublic securities offering requirements,
interpretive letters: I, 67-69
investment securities letter: IV, 90-91
152
Nuclear decommissioning common trust fund, invest¬
ment securities letter: II, 43-46
Offering circular requirements, interpretive letter: IV,
74-75
Office of the Comptroller of the Currency:
Community Reinvestment Act activities, 1992: I, 41
Comptrollers of the Currency, 1863-1992: I, 35
consumer complaint activities, 1992: 1,43
corporate applications, 1992: 1, 19
enforcement and special supervision activities:
January 1-June 30, 1992: 111,11-15
July 1 -December 31, 1992: I, 49-53
equal employment opportunities, testimony: III, 23-26
Federal Deposit Insurance Company Improvement
Act (FDICIA), implementation of: III, 29-30; 41-42;
45-48
financial statements, 1991: II, 87-97
litigation: III, 19-20; I, 22-24,
operating plan for bank supervision, 1993: I, 39
operations and financial management, overview: II,
81-85
report of operations, 1992:
administration: I, 29-34
bank supervision operations: I, 15-16
bank supervision policy: I, 12-15
Comptrollers of the Currency, 1983 to the present:
I, 35
corporate policy and economic analysis: I, 18-22
law department: I, 22-29
legislative and public affairs: I, 16-18
organization chart: I, 38
Senior Deputy and Deputy Comptrollers of the
Currency, 1983 to the present: I, 36-37
supervisory and examination initiatives, testimony: III,
27-30
OREO and in-substance foreclosure property, account¬
ing standards, interpretive letters: III, 75-82
OREO properties, notification requirements for im¬
provement of, interpretive letter: III, 83-84
Owensboro National Bank v. Moore: I, 23
Past due loans of national banks:
by asset size of bank:
March 31, 1992: II, 113
June 30, 1992: III, 135
September 30, 1992: IV, 109
December 31, 1992: 1,146
by states:
March 31, 1992: II, 112
June 30, 1992: III, 134
September 30, 1992: IV, 108
December 31, 1992: 1,146
Price Waterhouse report of independent accountants:
II, 87-97
Principal shareholder status, investment securities let¬
ter: II, 50
Ouasi-government securities as permissible invest¬
ments, interpretive letter: III, 89-91
Real estate appraisal regulation:
interpretive letters: II, 26-29; 36-38; IV, 56-58
no objection letters: IV, 79-90
Real estate lending, testimony: II, 17-18
Rebuttal presumptions in Change in Bank Control Act
notice, investment securities letter, II, 46-48
Regulation G, interpretive letter: II, 35-36
Regulatory burdens:
speeches: III, 37-39; I, 61-63
testimonies: III, 29-30; 41-44
Savings and loans converted to national banks:
January 1-June 30, 1992: 111,114
July 1-December 31, 1992: I, 126
Savings and loans merged with national banks:
January 1-March 31, 1992: II, 73-80
April 1-June 30, 1992: III, 71-72
July 1-September 30, 1992: IV, 50-51
October 1-December 31, 1992: I, 97-98
January 1-December 31, 1992: I, 118-122
Securities purchased for a national bank’s own ac¬
count, interpretive letter: IV, 73-74
Securitized assets, regulatory capital requirements, in¬
terpretive letter: III, 92-94
Small business lending by national banks, speech: IV,
25-27
Special supervision and enforcement activities:
January 1-June 30, 1992: 111,11-15
July 1-December 31, 1992: I, 49-53
Speeches and Congressional testimony:
January 1-March 31, 1992: II, 15-22
April 1-June 30, 1992: 111,21-55
July 1-September 30, 1992: IV, 15-37
October 1-December 31, 1992: I, 55-63
State-chartered banks converted to national banks:
January 1-June 30, 1992: 111,113
July 1-December 31, 1992: I, 126
State of Idaho v. Security Pacific Bank Idaho, N.A. : I, 23
Statistical tables on the condition of the national bank¬
ing system:
January 1-March 31, 1992: II, 3-9; 101-113
April 1-June 30, 1992: III, 3-9; 123-135
July 1-September 30, 1992: IV, 4-10; 97-109
October 1-December 31, 1992: I, 4-10; 135-147
Steinbrink, Stephen R.:
biography: inside front cover
153
speeches: III, 37-39; IV, 21-27; I, 61-63
testimonies: III, 23-35; 41-44; IV, 17-20; I, 57-60
Sullivan, Timothy: III, 45-48
Supervision and condition of national banks, testimony:
III, 27-35
Synovus Financial Corp v. Board of Governors of the
Federal Reserve System: III, 19
Tables on the structure of the national banking system:
January 1 to June 30, 1992: III, 107-119
January 1 to December 31, 1992: I, 101-131
Tikkanen v. Citibank (South Dakota), N.A.: I, 23
Trust department acceptance of services from outside
vendor, trust interpretation: III, 104-105
Trust department fees, trust interpretations: IV, 93; I,
70-74
Trust interpretations:
April 1-June 30, 1992: III, 102-105
July 1 -September 30, 1992: IV, 91-93
October 1-December 31, 1992: I, 80-83
Truth in Lending Act, trust interpretation: IV, 92-93
Variable Annuity Life Ins. Co. v. Clarke: III, 20
12 U.S.C. 24(7), interpretive letters: III, 82-83; IV, 58-
59; 61-65; 73-74
12 U.S.C. 29, interpretive letters: III, 83-84; IV, 77-79
12 U.S.C. 29(d) interpretive letter: IV, 65-66
12 U.S.C. 36, interpretive letters: III, 87-89; 91-92;
IV, 66
12 U.S.C. 72, investment securities letter: II, 49
12 U.S.C. 84, interpretation letters: IV, 55-56
12 U.S.C. 84(a)(2), interpretive letter: IV, 55-56
12 U.S.C. 92, interpretive letter: I, 70-74
12 U.S.C. 371, interpretive letters: II, 35-36
12 U.S.C. 375, investment securities letter: II, 51-54
12 U.S.C. 181 7(j), investment securities letter: II, 46-48
12 U.S.C. 1817(k), investment securities letter: II, 51-54
12 U.S.C. 1972, investment securities letter: II, 51-54
12 U.S.C. 3101, interpretive letters: IV, 59-61; 65-66;
67-68
12 U.S.C. 3102, interpretive letter: I, 67
12 U.S.C. 3722, interpretive letter: III, 87-89
12 CFR 1.4, interpretive letter: III, 89-91
12 CFR 1.8, interpretive letter: III, 89-91
12 CFR 1.9, investment securities letter: 11,48-49
12 CFR 5.50(d) investment securities letter: II, 46-48
12 CFR 7.73025, interpretive letters: III, 75-82
12 CFR 7.7380, interpretive letters: III, 87-89; 91-92
12 CFR 9, interpretive letter: I, 74-76
12 CFR 9.12, trust interpretation: IV, 93
12 CFR 9.12(a), trust interpretation: III, 102-103
12 CFR 9.12(b)(2), trust interpretation: II, 54-55
12 CFR 9.18:
investment securities letter: II, 42-46
trust interpretations: III, 102-103; IV, 91-92
12 CFR 9.18(a)(2), investment securities letter: III, 94-96
12 CFR 9.18(b)(1), trust interpretations: III, 102-103; I,
80-82
12 CFR 9.18(b)(2), trust interpretation: II, 55-56
12 CFR 9.18(b)(4), investment securities letter: II, 50-51
12 CFR 9. 1 8(b)(9)(ii), trust interpretation: I, 82-83
12 CFR 11, investment securities letter: III, 96-98
12 CFR 12.5(a), trust interpretation: III, 104
12 CFR 16, interpretive letter: IV, 74-75
12 CFR 16.5(f), investment securities letter: IV, 90-91
12 CFR 32.5(a), interpretive letter: IV, 75-77
12 CFR 32.5(b), interpretive letter: IV, 75-77
12 CFR 34:
interpretive letters: II, 36-38; IV, 56-58; 66-67
no objection letters: IV, 79-90
12 CFR 34.41 , interpretive letter: II, 26-28
12 CFR 34.41(a), interpretive letter: II, 27-28
12 CFR 84, interpretive letter: IV, 75-77
12 CFR 215, investment securities letter: II. 51-54
I.R. 7.3025, interpretive letter: III, 75-78
154
COMPTROLLER OF THE CURRENCY
Northeastern District
New York District Office
1114 Avenue of the Americas
Suite 3900
New York, NY 10036
(212)819-9860
Southeastern District
Atlanta District Office
Marquis One Tower
Suite 600
245 Peachtree Center Ave., N.E.
Atlanta, GA 30303
(404) 659-8855
Central District
Chicago District Office
One Financial Place
Suite 2700
440 South LaSalle Street
Chicago, IL 60605
(312)663-8000
Midwestern District
Kansas City District Office
2345 Grand Avenue
Suite 700
Kansas City, MO 64108-2683
(816)556-1800
Southwestern District
Dallas District Office
1600 Lincoln Plaza
500 North Akard
Dallas, TX 75201-3394
(214) 720-0656
Western District
San Francisco District Office
50 Fremont Street
Suite 3900
San Francisco, CA 94105
(415)545-5900
Special Fourth Class Rate
Postage and Fees Paid by
Comptroller of the Currency
Permit No. G-8
Comptroller of the Currency
Administrator of National Banks
Washington, D.C. 20219
OFFICIAL BUSINESS
Penalty for Private Use $300
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